Question 2

Timing Technology, Incorporated, manufactures timing devices. During 20x1, 2,700,000 units were completed and transferred to finished-goods inventory. On December 31, 20x1, there were 440,000 units in work in process. These units were 45 percent complete as to conversion and 100 percent complete as to direct material. Finished-goods inventory consisted of 1,134,000 units. Materials are added to production at the beginning of the manufacturing process, and overhead is applied to each product at the rate of 100 percent of direct-labor costs. There was no finished-goods inventory on January 1, 20x1. A review of the inventory cost records disclosed the following information:

	Units	Direct Material (Costs)	Direct Labor (Costs)
Work in process, January 1, 20x1 (82% complete as to conversion)	430,000	$ 334,000	$ 327,400
Units started in production	2,710,000
Direct-material costs		$ 9,086,000
Direct-labor costs			$ 7,207,400

Required:

1. Complete a schedule as of December 31, 20x1, to compute the physical flow of units.

2. Complete a schedule as of December 31, 20x1, to compute the equivalent units of production using the weighted-average method.

3. Complete a schedule as of December 31, 20x1, to compute the costs per equivalent unit for material and conversion.

Note: Round "Cost per Equivalent Unit" to 2 decimal places.

4. Complete a schedule as of December 31, 20x1, to compute the cost of work-in-process inventory.

5. Complete a schedule as of December 31, 20x1, to compute the cost of finished-goods inventory.