ok ences c. Department X is the first stage of Sarena Solvents's production cycle. The following information is available for conversion costs for the month or Physical Units Beginning work-in-process inventory (60% complete) Started in December Completed in December and transferred to Department Y Ending work-in-process inventory (40% complete) Using the FIFO method, the equivalentunits for the conversion cost calculation are: 60,000 545,000 532,500 72,500

Ustrig the FaO metnod, the equivaientjunits for the conversion cost calculation ate Saratoga Systems produces a single product The production process requires all material to be brought to the shop floor before amy work begins. The material is then processed and assembled and then transferred to finished goods inventory. Every unit is completely identical in specification and use, and no customization is possible. Because of the cost of the product, only a few units are produced in any one month During June, only three units were started, and these were labelled ID061, 10062, and ID063. There was no beginning inventory of any kind on June 1. Records from the raw materlal store and employee time records show the following requisitions and direct labor costs The difference in the matenal cost represents the historical cost of material purchased at different tmes. The difference in labor cost represents the difference in senionity (not skili) of the individual employees. Overhead for the month of June totaled $69,825 Durting March, IDO61 and ID062 were completed and transferred to finished goods. ID063 was stil in process on June 30. Required: a. Suppose Saratoga Systems uses a job cost system and applies overhead to products based on direct labor cost. What will be the cost of the units transferred to finished goods? What wil be the amount in Work-in-Process Ending Inventory? b. Suppose Saratoga Systems uses process cosung and ID063 was 50 percent complete with respect to conversion cost (direct labor and overhead cost) Assume that direct materiais cost is not traced to individual units. What will be the cost of the units transterred to finished goods? What will be the amount in Work-1n-Process Ending Inventory? c. Based on the provided information, does process costing appear to be sufficient? Complete this question by entering your answers in the tabs below. Suppose Saratoga Systems uses a job cost system and applies overhead to products based on direct labor cost. What will be the cost of the units transferred to finished goods? What will be the amount in Work-in-Process Ending Inventory? Note: Do not round intermediate calculations