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.

Units Materials

Work in process Jan. 1,(100% complete

with respect to materials costs and 80% 100,000 $100,000

with respect to conversion)

Units started into production 500,000

Costs added during the year

Materials $650,000

Conversion

Unit completed during the year450,000

The company uses the weighted average cost method in its process costing system. The ending inventory is 100% complete with respect to materials costs and 50% with respect to conversion costs.

Required:

1. Compute the equivalent units of production and the cost per equivalent units for materials and for conversion costs.

ii. Determine the cost transferred to finished goods.

iii. Determine the amount of cost that should be assigned to the ending work in process inventory.