Kao Tiles is a specialized producer of ceramic tiles. Its production process involves highly skilled workers and top-quality ceramic crafters. Work in Process is relatively large because each tile is in process for up to three weeks because of art, mold work, and drying time. October began with 5,000 units (a unit is one ceramic tile) in process, on average 65 percent complete as to direct materials and 35 percent complete as to conversion costs; 6,000 units were started during the month, and ending Work in Process inventory consisted of 7,000 units that were on average 75 percent complete as to direct materials and 50 percent complete as to conversion costs.

Cost Information			Beginning Work in Process		Costs Added in October
Direct material			$ 170,000		$ 422,000
Direct labor			160,000		1,055,000
Manufacturing overhead			50,000		107,500

Cost per Equivalent Unit Calculation

Prepare a production cost report for the month of October. Kao Tiles, Inc-October Unit Reconciliation Units to account for Units accounted for Material Labor Overhead Total Cost Beginning work in process $ $ $ $ $ Cost incurred during October Total $ $ $ $ Units Units completed Equivalent units Ending work in process Total Cost per equivalent $ unit $ $ $ $ Cost Reconciliation Total cost to account for $ Cost of completed units $ Cost of ending WIP $ $