Good evening,

I am currently stuck on the below problem. Could you please explain how to solve each part, step by step including the equations used.

Ex 4-25. Timing Tech Inc manufactures timing devices. During 20x1, 900,000 units were completed and transferred to finished goods inventory. On Dec 31, 20x1 there were 300,000 units in work in process. These units were 50 percent complete - to conversion and 100 percent complete - to direct material. Finished goods inventory consisted of 200,000 units. Materials are added to production at the beginning of the manufacturing process, and overhead is applied to each product at the rate of 60 percent of direct labour costs. There was no finished goods inventory on Jan 1, 20x1. A review of the inventory cost records disclosed the following info:

Costs

Work in process, Jan 1, 20x1UnitsMaterialsLabour

(80% complete - to conversion)200,000$200,000 $315,000

Units started in production1,000,000

Direct Material Costs$1,300,000

Direct Labour Costs$1,995,000

Prepare schedules as of Dec 31, 20x1 to compute the following:

1.Physical flow of units

2.Equivalent units of production using the weighted average method.

3.Cost per equivalent unit for material and conversion

4.Cost of the December 31, 20x1, finished goods inventory and work in process inventory.