Pink Lips Pink 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 Pink started production on 20,300 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 15,800 units. The June 30 work in process was 30% of the way through the production process. Direct materials costing $5,278 were placed in production during June, and direct labor of $3,370 and manufacturing overhead of $3,490 were assigned to the process.

1. Fill in the time line for Pink Lips.

2. Use the time line to help you compute the total equivalent units and the cost per equivalent unit for June.

3. Assign total costs to (a) units completed and transferred to Finished Goods and (b) units still in process at June 30.

4. Prepare a T-account for Work in Process Inventory to show activity during June, including the June 30 balance.