Miller Company manufactures a product for which materials are added at the beginning of the manufacturing process. A review of the company's inventory and cost records for the most recently completed year revealed the following information:

	Number of Units	Materials	Conversion
Work in process, Jan. 1 80% complete with respect to conversion costs	100,000	$100,000	$157,500
Units started into production	500,000
Costs added during the year
Materials		$650,000
Conversion			$997,500
Units completed during the year	450,000

The company uses the weighted-average method in its process costing system. The ending inventory is 50% complete with respect to conversion costs and 100% complete with respect to materials. Required: Make sure that you show all of your calculations for full marks and that they are properly labeled.

a.) [3 Marks] Compute the equivalent units of production for both materials and for conversion costs.

b.) [3 Marks] Compute the cost per equivalent units for materials and for conversion costs.

c.) [4 Marks] Determine the total cost that has been transferred to finished goods inventory, and the amount of cost that should be assigned to the ending work-in-process inventory.