6 Tip #2 for Case 4-39 - Calculat... Tip #2 for Case 4-39 - Calculation of Costs Per Equivalent Unit Use this template to calculate the costs per equivalent units you will use to solve Case 4-39 (refer to Exhibit 4-7 on page 146 of your textbook): Direct ESE Costs incurred during October Total costs to account for 'Equivalent units H H H I Costs per equivalent unit Tip #1 for Case 4-39 - Calculat... Equivalent units Use this template to calculate the equivalent units you will use to solve Case 4-39 (refer to Exhibit 4-6 on page 145 of your textbook): Equivalent Units Physical % of Direct Units Completion Material Conversion WIP October 1 Units started during October Total units to account for Units completed and transferred out during October WIP October 31 Total units accounted for Total equivalent unitsTutor Case Study - 4 Weighted-Average Process Costing; Ethics Laredo Leather Company manufactures high-quality leather goods in Quebec. The company's profits have declined during the past nine months. In an attempt to isolate the causes of poor profit performance, management is investigating the manufacturing operations of each of its products. One of the company's main products is leather belts. The belts are produced in a single, continuous process in ep the Montreal plant. During the process, leather strips are sewn, punched, and dyed. The belts then enter a final finishing stage to conclude the process. Labour and overhead are applied continuously during the manufacturing erified by process. All materials, leather strips, and buckles are introduced at the beginning of the process. The firm uses the weighted-average method to calculate its unit costs. The leather belts are sold wholesale for $9.95 each. Management wants to compare the current manufacturing Solutions - costs per unit with the market prices for leather belts. Top management has asked the plant controller to submit data on the cost of manufacturing the leather belts for the month of October. These cost data will be used to determine whether modifications in the production process should be initiated or whether an increase in the selling price of the belts is justified. The cost per belt used for planning and control is $5.35. The work-in-process inventory consisted of 400 partially completed units on October 1. The belts were 25 percent complete as to conversion. The costs included in the inventory on October 1 were as follows: Leather strips $ 990 Buckles 260 Conversion costs 300 Total. $1,550 During October, 7,600 leather strips and buckles were put into production. A total of 7,000 leather belts were completed. The work-in-process inventory on October 31 consisted of 1,000 belts, which were 50 percent complete as to conversion. The costs charged to production during October were as follows: Leather strips ..... $19,900 Buckles.. 5.250 Conversion costs .. 20,700 Total $45,850