Producer manufactures a single product. Its operations are a continuing process carried on in two departments: machining and finishing. In the production process, materials are added to the product in each department without increasing the number of units produced.

Based on the information in the exhibits ( see below for exhibits) , enter the appropriate amounts or unit costs for JuneYear2 in the associated cells. Round all answers to the nearest hundredth.

Determine the equivalent units of production (EUP) for the following items.

EUP

1. Materials

2. Labor

3. Overhead

4. Spoilage

Determine the equivalent cost per EUP for the following items.

Cost per EUP

5. Materials

6. Labor

7. Overhead

8. Spoilage

Determine the total cost of the following items.

Total cost

9. Transferred out

10. Ending WIP

EXHIBITS

1.To: Jerry Pratt, Accounting Manager

From: Grant Sampson, Production Manager

Date: July 1, Year 2

RE: Percentage of Completion of Units as of 6/30

Jerry,

I just wanted to be sure that you were informed of the percentage of completion of units in process at June 30, Year 2. For the 8,000 units in process at the end of the period, the cost of materials is 100% complete, labor is 70% complete, and overhead is 70% complete. Let me know if you need anything more.

Best,

Grant

2.Units in process, June 1, Year 2: 0

Units transferred from preceding department: 60,000

Units started in production: 0

Units completed and transferred out: 50,000

Units in process, June 30, Year 2: 8,000

Units spoiled in production: 2,000

3.Cost records showed the following charges for the month of June:

Materials: $88,500

Labor:$141,500

Overhead: $25,700

Costs Transferred-In: $360,000

Total Costs to Account for $615,700

4.To: Hannah Rowland, Staff Accountant

From: Jerry Pratt, Accounting Manager

Date: July 5, Year 2

RE: Assignment

Hannah,

I recently received the complete set of final costs pertaining to the production of June Year 2. Iwill need your help to calculate equivalent units of production and the costs per equivalent unit. I may need your help calculating total costs for some departments as well. Let me know if there are any issues.

Cordially,

Jerry

5.To: Jerry Pratt, Accounting Manager

From: Conrad Johnson, CFO

Date: July 2, Year 2

RE: Spoilage Units Update/New Spoilage Policy

Jerry,

After reviewing the spoiled units to determine whether any of them are salvageable, the production team has come to the following conclusion: the units spoiled in production had no scrap value and were 50% complete with respect to materials, labor, and overhead.

Furthermore, remember that the new company policy dictates that we treat the cost of spoiled units in production as a separate element of cost in the department in which the spoilage occurs.

I just wanted to give you the updated costs and remind you of the new policy.

Regards,

Conrad