On June 1, Vernon Company had a beginning work-in-process inventory of

20,000 units 100% complete as to materials and 60% as to Direct Labour [DL], and Manufacturing Overhead[MOH].

These units contained $60,000 of direct materials and $50,000 of direct labour cost and an appropriate amount of overhead applied.

Manufacturing Overhead [MOH], is applied at the rate of 75% of direct labour cost.

Vernon uses a weighted-average process-costing system. All raw material is added at the start of the manufacturing process; conversion cost is incurred evenly throughout production for the purpose of this exercise, you must add Manufacturing Overhead [MOH] and Direct Labour to determine Conversion costs.

At the end of the current cycle, the company shipped out 55,000 units.

The following data relate to activity during June:

Ending work in process, (100% of the material and 40% complete as to conversion)	15,000 units
Direct materials used ($) $135,000
Direct Labour $200,000

Required:

B. Use the template provided to determine the following:

1. The number of units put into production during the period

2. The total equivalent units for direct material and conversion cost.

3. The cost per equivalent unit of direct material and conversion cost.

4. Reconcile the cost of the ending inventory and the goods transferred

with the total costs

Clearly label each item

[20 marks/25 minutes]