1. Calculate the material cost and the conversion cost per equivalent unit.

2. Calculate the full production cost per unit.

3. Show that the total input of costs is equal to the output of costs.

CASE1 The company U2 produces coatings in one production department. The production process begins with the mixing of all kinds of chemicals (direct materials) and ends with the filling and packaging of paint pots. Here are data for the month of July 20XX: Beginning inventory July 20XX: - Direct materials 107,000 31,800 - Direct labour ( 25/direct labour hour) - Indirect variable production costs ( 2/direct labour cost) Incurred costs in July 20XX: - Direct materials - Direct labour (25/direct labour hour) - Indirect variable production costs ( 2/direct labour cost) 663,000 104,400 Beginning inventory July 20XX (40% degree of completion) Completed and approved products New production in July 20XX 5,000 units 28,500 units 30,000 units The company uses the weighted average method to calculate the full production cost of completed and approved paint pots and the ending inventory of paint pots (3,500 units). Inspection is done at 80% of the production process. The normal loss is set at 6% of the 'tested' products of July 20XX. The degree of completion of the ending inventory is 90%. All materials are added at the beginning of the production process