1. The sewing process used by Sunland Inc. began the year with an inventory of $3900 (Direct Materials were 100% complete). Using First-In, First-Out (FIFO), the company calculated the equivalent units of production for this year to be:

		Direct Materials (DM)		Conversion Costs (CC)
Units in Beginning Work-in-Progress (WIP) Inventory Completed This Period		0		33
Units Started and Completed This Period		780		780
Units in Ending WIP Inventory		160		79

 

Sunland has calculated the cost per equivalent unit as follows: Direct Material (DM) $86 and Conversion Costs (CC) $40. How much cost should Sunland assign to the units completed and removed from WIP Inventory in the current year?

 

1.