Task 3: Conversion Costs Problem

Hartwell Drug Company produces a supplement to improve bone density. Conversion costs are added evenly throughout the production process. The following information is available for March:

Units
Units (gallons) in process, March 1 (40% complete)	400

Units started in March	1,000
Units in process, March 31 (80% complete)	250
Costs
Conversion costs in WIP, March 1
Labor	$36,000
Overhead	$6,000
Labor costs in March (5,100 hours)	$102,780

Overhead in March $49,000

1. Compute the number of units completed in March.

2. Compute the cost per equivalent unit for conversion costs. 3. Compute the conversion costs included in units completed in March.

4. Compute the conversion costs included in units in process at the end of March.