Equivalent Units of Production. Mars Products had 3,000 units in beginning WIP inventory; all were completed and transferred out during the period. During the period 6000 units were started. Of the 6000 units, 1000 were completed and transferred out, AND 5000 units were partially completed. These 5000 units were 60% complete for Assembly and 30% complete for Packaging. Cost of beginning WIP inventory were $95,000 for Assembly and $66,000 for Packaging. Costs incurred during the period were $115,000 for Assembly and $110,000 for Packaging. Homework Problem #1: Using the Weighted Average method, compute the Cost Per Equivalent Unit for Assembly and for Production. Use the example on page 203 of the text as a guide. Homework Problem #2: Prepare a Cost Reconciliation for the period. Budgets and Variance Analysis. Sam's Products has one product and the following costs per unit to make one finished product: Direct materials per unit: 5 pounds @ $1 per bag Direct labor per unit: 3 hours @ $10/hour Variable overhead (based on Direct Labor Hours): 3 hours at $2/DLH The planning budget was based on producing and selling 1,000 units. However, during the period, the company incurred the following costs: (a) 5700 pounds were used to produce 1100 finished products. Cost per bag was $0.95 (b) Direct laborers worked 3200 hours at a rate of $13.00 per hour (c) Total variable manufacturing overhead for the month was $6700 (d) Fixed Expense information is not given in this example (e) Sales price per unit is $50