• Fill in the blanks.

Pure Aqua Company is a producer of flavored mineral water. These data are for its March production:

Work in process inventory, March 1, (3,000 units):

Direct materials $12,600

Direct labor 6,000

Manufacturing overhead (1,500 machine-hours at $6 per machine-hour) $9,000

Units started in March 9,000

Costs incurred in March:

Direct materials $36,360

Direct labor 55,200

Manufacturing overhead applied (13,800 machine-hours)

The ending inventory consisted of 4,500 units (100% complete as to materials, 60% complete as to conversion).

Compute the following:

• Number of units completed and transferred to finished goods inventory.
• The equivalent units of production for materials and conversion costs using the weighted average method.
• materials and conversion costs using the weighted average method.
• Cost per equivalent unit for materials and conversion costs.
• Cost of units completed and transferred.
• Cost of ending inventory.

Pure Aqua Company

Process Cost Summary

For Month Ended March 31

Costs Charged to Production

Costs of beginning goods in process

Costs of beginning goods in process

Direct Materials

12,600

Direct Labor

6,000

Factory Overhead

9,000

27,600

Costs incurred this period

incurred this period

Direct Materials

36,360

Direct Labor

55,200

Factory Overhead

82,800

174,360

13,800 mach hours

Total costs to account for

201,960

Unit Cost Information

Units to account for:

Units accounted for:

Beginning goods in process

3,000

Completed and transferred out

?

Units started this period

?

Ending in process

4,500

Total units to account for

?

Total units accounted for

12,000

Equivalent Units of Production (EUP)

DM

DL

OH

Units completed and transferred out

100%

?

?

?

Units of ending goods in process

Units

% Complete

Direct materials

4,500

100%

?

Direct labor

4,500

60%

?

Factory Overhead

4,500

60%

?

Equivalent units of production

?

?

?

Cost per Equiv Unit of Production

DM

DL

OH

Costs of beginning goods in process

12,600

6,000

9,000

Costs incurred this period

36,360

55,200

82,800

Total costs

$48,960

$61,200

$91,800

(divide by) Total Equivalent Units of Production

12,000

10,200

10,200

Cost per Equiv Unit of Production

?

?

?