Luxury Mattress Inc. has completed its monthly inventory count for memory foam mattresses and recorded the following information for ending inventory: 450 units 100 percent complete, 350 units 50 percent complete, and 300 units 25 percent complete. The company uses a process costing system to determine unit cost. Why would unit cost be inaccurate if 1,100 units were used to determine unit cost?

Requirement:

1. Calculate the equivalent units of production for Luxury Mattress Inc.
2. Discuss why using 1,100 units would lead to an inaccurate unit cost.