1. General Motors Company uses process costing for its automobile manufacturing. In July 2033, the company incurs costs of $2,000,000 and produces 10,000 units. The beginning work in process was 2,000 units, 50% complete. During the period, 9,000 units were completed and transferred out. Ending work in process was 3,000 units, 30% complete.

Required:

• Calculate the equivalent units of production for direct materials and conversion costs.
• Determine the cost per equivalent unit for direct materials ($150 per unit) and conversion costs ($100 per unit).
• Allocate costs to completed units and units in ending work in process.