On August 1, Torun Company had a Beginning WIP inventory of 10,000 units (80% complete for Materials; 40% complete for Conversion, with respective costs of $20,000 and $6,000).

During the month, 18,000 units were transferred out and 4,000 units remained in Ending WIP inventory (60% complete with respect to Materials; 20% complete with respect to Conversion costs).

Costs added during the month were $41,200 for Materials and $27,840 for Conversion.

1. Using the weighted average method, calculate the equivalent units of production for direct materials and conversion costs.

2. Calculate the cost per equivalent unit for direct materials and conversion.

3. Calculate the cost of units transferred to Finished Goods and cost of units in Ending WIP.

4. Reconcile your answer.