PROBLEM 3-2. Comprehensive Problem, One Department [LO 3, 4] Marquita Filters produces an air filter for use in jet aircraft. Parts are added at several points in the production process. In August, production began with 600 filters in Work in Process, 80 percent complete as to materials and 70 percent complete as to labor and overhead. During the month, an additional 2,700 units were started into production. 700 filters were in Work in Process at the end of the month, and they were 70 percent complete as to materials and 60 percent complete as to labor and overhead.

Cost of information for August	Beginning WIP (Inventory)	Cost Added in August
Direct Material	$ 45,000	$ 267,090
Direct Labor	$ 11,000	$ 76,580
Manufacturing Overhead	$ 80,000	$ 496,820
Total	$ 136,000	$ 840,490

Required a. Calculate the cost per equivalent unit for each of the three cost items and in total. b. Calculate the cost of items completed in August and the cost of ending Work in Process inventory. c. Reconcile the sum of the two costs in part b to the sum of beginning Work in Process and costs added in August.