1.

Sparky Corporation uses the FIFO method of process costing. The following information is available for February in its Molding department:

	Units	Direct materials Percent Complete	Conversion Percent Complete
Beginning work in process inventory	39,000	100%	60%
Units started and completed	124,000
Units completed and transferred out	163,000
Ending work in process inventory	37,000	100%	30%

Production cost information for the Molding department follows.

Beginning work in process
Direct materials	$ 57,000
Conversion	62,850	$ 119,850
Costs added this period
Direct materials	$ 380,100
Conversion	613,150	$ 993,250

Calculate the cost per equivalent unit of conversion.

2.

Crinkle Cut Clothes Company manufactures two products CC1 and CC2. Current direct material and direct labor costs are detailed below. Next year the company wishes to use a plantwide overhead rate with direct labor hours as its allocation base. Next year's overhead is budgeted to be $367,120. The direct labor and direct materials costs are budgeted to be consistent with the current year. Direct labor costs $25 per hour and the company expects to manufacture 34,000 units of CC1 and 103,000 units of CC2 next year.

	Direct Material per Unit	Direct Labor Dollars per Unit
CC1	$ 38.30	$ 17.50
CC2	$ 26.40	$ 16.50

Compute the plantwide overhead rate for next year.

3.

A company uses the FIFO method for inventory costing. At the beginning of the period, it reported the following data:

	Units	Coversation Percent Complete
Beginning work in process inventory	26,000	40%
Units started this period	179,000
Units completed and transferred out	177,000
Ending work in process inventory	28,000	75%

The production department data related to conversion costs follows:

Costs of beginning work in process	$ 111,000
Costs added this period	738,825