Question 1
Homer Corporation manufactures a product for which materials are added at the beginning of the manufacturing process. A review of the companys inventory and cost records for the most recently completed year revealed the following information:
	Units	Materials	Conversion
Work in process, January 1 (80% complete with respect to conversion costs)	100,000	$130,000	$175,500
Units started into production	500,000
Costs added during the year		$650,000	$997,500
Units completed during the year	540,000
The company uses the weighted-average cost method in its process costing system. The ending inventory is 50% complete with respect to conversion costs.
Required: Show your work.		20 points
a. Compute the equivalent units of production.
b. Compute the cost per equivalent units for materials and for conversion costs.
c. Determine the amount of cost that should be assigned to the ending work in process inventory.
d. Determine the cost transferred to finished goods.