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Grand Lips produces a lip balm used for cold-weather sports. The balm is manufactured in a single processing department. No lip balm was in process on May 31, and Grand started production on 20,500 lip balm tubes during June. Direct materials are added at the beginning of the process, but conversion costs are incurred evenly throughout the process. Completed production for June totaled 15,200 units. The June 30 work in process was 40% of the way through the production process. Direct materials costing $4,305 were placed in production during June, and direct labor of $3,410 and manufacturing overhead of $920 were assigned to the process. Read the requirements. Requirement 1. Fill in the time line for Grand Lips. Start Complete Complete Requirement 2. Use the time line to help you compute the total equivalent units and the cost per equivalent unit for June. Grand Lips Lip Balm Department Equivalent Unit Computation Month Ended June 30 Flow of Equivalent Units Direct Conversion Physical Units Flow of Production Materials Costs Units accounted for: Total equivalent units Compute the cost per equivalent unit. (For entries with a $0 balance, make sure to enter "0" in the appropriate cell(s). Enter the cost per equivalent unit to two decimal places.) Grand Lips Lip Balm Department Cost per Equivalent Unit Month Ended June 30 Direct Conversion Materials Costs Cost per equivalent unit Requirement 3. Assign total costs to (a) units completed and transferred to Finished Goods and (b) units still in process at June 30. (Enter quantities first, then the cost per equivalent unit amounts in the same order as calculated in the preceding step.) Lip Balm Department Month Ended June 30 Assigning Costs Direct Conversion Materials Costs Total a. Completed and transferred out: b. Ending work in process: Total costs accounted for Costs assigned to units completed and transferred out Costs assigned to units in beginning work in process, June 1 Costs assigned to units in ending work in process, June 30 Equivalent units completed and transferred out Equivalent units in beginning work in process, June 1 Equivalent units in ending work in process, June 30 Requirement 4. Prepare a T-account for Work in Process Inventory to show activity during June, including the June 30 balance. (For entries with a $0 balance, make sure to enter "O" in the appropriate cell.) Work in Process Inventory