n its first month of operations, Allred Company's Department 1 incurred charges of $504,000 for direct materials (22,500 units), $270,900 for direct labor, and $94,500 for manufacturing overhead. At month end, 21,250 units had been finished and transferred out. Those remaining were finished with respect to material but only 40% finished with respect to conversion.

Assuming Allred uses the weighted average method and that materials are added at the beginning of the process and conversion occurs evenly, compute the following:

The equivalent units for material and conversion.

The cost per equivalent unit for material and conversion.

The total cost assigned to the units transferred out.

The total cost assigned to the ending inventory.

Prove that your solutions to requirements (c) and (d) sum to the total costs to be accounted for.

Round average cost per equivalent unit to two decimal places, if applicable.

Round other answers to the nearest whole number, when appropriate.

Allred Company Department 1 Flow of Units and Equivalent Units Calculation
	Equivalent Units
	% Work done	Direct Materials	% Work Done	Conversion Costs
Complete/Transferred	Answer	Answer	Answer	Answer	Answer
Ending Inventory	Answer	Answer	Answer	Answer	Answer
Total	Answer	a.	Answer		Answer	a.

Product Cost Report
	Direct Materials		Conversion Costs
Beginning Inventory	Answer		Answer		Answer
Current	Answer		Answer		Answer
Total Costs to Account For	Answer		Answer		Answer
Total Equivalent Units			Answer		Answer
Average cost / Equivalent unit			Answer	b.	Answer	b.
Complete / Transferred:
Direct Materials	Answer
Conversion costs	Answer
Cost of Goods Manufactured	Answer	c.
Ending Inventory:
Direct Materials	Answer
Conversion costs	Answer
Cost of Ending Inventory	Answer	d.
Total Costs Allocated	Answer	e.