Pearl Glaze adds direct materials at the beginning of its production process and adds conversion costs uniformly throughout the process.

Units in beginning inventory 3,000

Units started during the period 17,000

Units partially completed in prior period 2,500

Percentage of completion of ending 100% for direct materials;

work in process inventory 70% for conversion costs

Percentage of completion of beginning 100% for direct materials;

inventory in prior period 40% for conversion costs

1. Given the following information from Pearls records for July and using Steps 1 and 2 of the FIFO costing method, compute the equivalent units of production:
2. Using the information given above and the data that follow, compute the total cost per equivalent unit.

	Beginning Work in Process	Costs for the Period
Direct materials	$7,600	$20,400
Conversion costs	2,545	32,490

3. Using the data provided above, assign costs to the units transferred out and to the units in ending inventory for July.