Equivalent Units and Product Cost Report-Weighted Average Method In its first month's operations (January 2016,, Allred Company's Department 1 incurred charges of $180,000 for direct materials (20,000 units), $49,500 for direct labor, and $87,000 for manufacturing overhead. At month-end, 17,600 units had been finished and transferred out. The remaining units were finished with respect to material but only 25% complete with respect to conversion costs. Assuming Allred uses the weighted average method and that materials are added at the beginning of the process and conversion costs occur evenly, compute the following: a. The equivalent units of materials and conversion costs. b. The cost per equivalent unit of materials and conversion costs. C. The total cost assigned to the units transferred out. Page 2 d. The total cost assigned to the ending inventory. e. Prove that your solutions to requirements (c) and (d) sum to the total costs to be accounted for. Round average cost per equivalent unit to two decimal places, if applicable. Round other answers to the nearest whole number, when appropriate. Allred Company Department 1 Flow of Units and Equivalent Units Calculation Equivalent Units % Work Direct % Work done Materials Done Complete/Transferred 17600 100% 17600 100% Ending Inventory 2400 100 % 2400 25% Total 20000 20000 Conversion Costs 17600 600 18200 a. Product Cost Report Direct Conversion Materials Costs Beginning Inventory $ 0 $ Current Total Costs to Account For Total Equivalent Units 20000 18200 Average cost / Equivalent unit $ 9b. $ 7.5 b. Complete / Transferred: Direct Materials $ 158400 Conversion costs 132000 Cost of Goods Manufactured $ 290400 C. Ending Inventory: Direct Materials 21600 Conversion costs 4500 Cost of Ending Inventory $ 26100 d. Total Costs Allocated $ 316500 e