Martin Company manufactures a single product. The company uses the weighted average cost method in its process costing system. Activity for June has just been completed. An incomplete production report for the first processing department follows:

Quantity

ScheduleUnits to be accounted for:Work in process, June 1 (all materials, 75% labour andoverhead added last month)19,500Started into production97,000Total units116,500

Total

CostMaterialsLabourOverheadWhole

UnitCost to be accounted for:Work in process, June 1$22,660$17,300$1,880$3,480Cost added by the department136,54067,00023,88045,660Total cost (a)$159,200$84,300$25,760$49,140Equivalent units (b)116,500108,400108,400Cost per EU, (a) (b)$0.72+$0.24+$0.45=$1.41

Required:

1.Prepare a schedule showing how the equivalent units were computed for the first processing department.

2.Complete the cost reconciliation part of the production report for the first processing department.