Mr. Lumber Company processes rocks for manufacturing construction materials. The company employs a process costing system for its manufacturing operations. All direct materials are added at the beginning of the process, and conversion costs are incurred uniformly throughout the process. So, Work-in-Process Inventory is only 50% complete as to conversion cost.

1. Calculate the equivalent units of direct materials and conversion during December. Use the weighted-average method.

2. Calculate the cost per equivalent unit for both direct materials and conversion during December. Use the weighted-average method.

3. Compute the cost of the ending Work-in-Process.

4.Under what conditions will process costing be appropriate to use? Support your response with appropriate reference. Use APA.

	Tons of Pulp
Work-in-Process Inventory, December 1	3,000
Started during December	14,000
Units to account for	17,000
Units from beginning Work-in-Process, which were completed and transferred out during December	3,000
Started and completed during December	8,400
Work-in-Process Inventory, December 31	5,600
Total units accounted for	17,000

Work-in-Process Inventory, December 1
Direct materials	$ 47,640
Conversion	116,202
Costs incurred during December
Direct materials	217,560
Conversion	255,270