PROBLEM II

The inventory at May 1 and the costs charged to work in Process Department B during May for Star Company are as follows:

8,000 units, 3/4 completed$ 65,600

From Department A, 43,500 units..78,300

Direct Labor 292,400

Factory overhead...73,100

During May, all direct materials are transfer from Department A, the units in process at May 1 were completed, and of the 43,500 units entering the department, all were completed except 9,000 units which were 2/3 completed. Inventories are costed by the first-in, first-out method.

INSTRUCTIONS

Prepare:

a) the reconciliation of physical units

b) Calculate the equivalent units