The Saunders Paint Co. uses a process costing system. You have been given the following selected information for July 2020:

	Units	Percent Complete
Beginning work in process	6,000	70%
Units started	24,000
Ending work in process	10,000	60%

The total cost of the beginning work in process was $37,000, of which $7,000 was for direct labour costs. Overhead is applied on the basis of direct labour costs.

During July, the company added $69,400 of direct materials, $50,500 of direct labour, and $60,600 of overhead to work in process.

All direct materials are added at the beginning of the process, and the conversion costs are incurred evenly throughout the process.

Instructions

a. Calculate the overhead rate.

b. Calculate the direct materials, the direct labour, and the overhead cost components of the beginning work in process.

c. Calculate the number of equivalent units that would be used to establish the weighted-average costs for direct materials, direct labour, and overhead.

d. Calculate the number of equivalent units that would be used to establish the FIFO costs for direct materials, direct labour, and overhead.

e. Assuming weighted-average is used, calculate the cost of goods completed and transferred out.

f. Assuming FIFO is used, calculate the cost of ending work in process inventory for direct materials, direct labour, and overhead. Show each component separately.