Determining Unit Cost: FIFO Costing Method

Pearl Glaze adds direct materials at the beginning of its production process and adds conversion costs uniformly throughout the process. The following information is from Pearl Glaze's records for July.

Units in beginning inventory3,000Units started during the period17,000Units partially completed in prior period2,500Percentage of completion of ending100%for direct materials;work in process inventory70%for conversion costsPercentage of completion of beginning100%for direct materials;inventory in prior period40%for conversion costsUsing the data that follow, compute the total cost per equivalent unit:

Equivalent Units of ProductionDirect materials17,000Conversion costs18,050Beginning Work in ProcessCosts for the PeriodDirect materials$7,600$20,400Conversion costs2,54532,490Total cost per equivalent unit$

Using the data, assign costs to the units transferred out and to the units in ending inventory for july.