Question 6 (11 marks)

Pirates Corp. (Pirates) produces high-quality replica gold coins for toy pirate ships. Producing the coins takes two processes: cutting, for smoothing and cutting the gold, and then stamping, for printing pictures on the coins. Pirates uses a first in, first out process costing system to record inventory and cost of goods sold.

The following is the production information for the Stamping department for the month of October. Good units transferred from the Cutting department into the Stamping department are added at the start of this process, with conversion costs incurred evenly throughout. A polish is added at the 80% complete point.

Beginning work-in-process (WIP) 30% complete	5,000 units
Costs in beginning WIP:
Transferred-in costs	$125,000
Conversion costs	$ 95,000
Costs added during the month of October:
Direct materials polish	$256,000
Transferred-in costs (12,000 units)	$315,000
Conversion costs	$198,000
Ending WIP 90% complete	3,500 units

Required:

1. Complete the process costing report for the month of October. (5 marks)
2. Using the report in part (a), calculate the following information:
   1. cost per equivalent unit (1.5 marks)
   2. total costs transferred out (3 marks)
   3. ending work-in-process (1.5 marks)