In its first month's operations (January 2016), Allred Company's Department 1 incurred charges of $140,000 for direct materials (10,000 units), $95,000 for direct labor, and $87,000 for manufacturing overhead. At month-end, 8,800 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 FIFO method and that materials are added at the beginning of the process and conversion costs occur evenly, compute the following:

1. The equivalent units for material and conversion.

2. The cost per equivalent unit for material and conversion.

3. The total cost assigned to the units transferred out.

4. The total cost assigned to the ending inventory.

5. Prove that your solutions to requirements (c) and (d) sum to the total costs to be accounted for.