Acorn Furniture uses a process cost system to account for its table factory. Beginning inventory consisted of 4,500 units (100% complete as to material, 45% complete as to labor) with a cost of $138,500 materials and $107,200 conversion. 62,000 units were started into production during the month with material costs of $1,845,000 and $2,481,375 of conversion costs. The ending inventory of 5,200 chairs was 100% complete as to materials and 30% complete as to labor. Required: HINT: Use the excel template found on blackboard Equivalent Units of Production to help you.

Part 2: Using the FIFO (first-in-first out method):

a. Compute the equivalent units of production for each input.

b. Compute the cost per unit.

c. Compute the cost transferred out to finished goods.

d. Compute the ending work in process inventory balance.