Zeus Corporation produces cultured diamonds via a secretive process that grows the diamonds in a vacuum chamber filled with a carbon gas cloud. The diamonds are produced in a single continuous process, and Zeus uses the weighted-average process costing method of accounting for production. Below is the company's calculation of cost per equivalent unit for October. During October, the company completed and transferred 8,000 diamonds to finished goods. An additional 4,000 units were still in process at the end of the month. The ending work in process was 60% complete with respect to direct materials and 40% complete with respect to both elements of conversion cost.

Prepare a schedule showing the allocation of total cost between finished goods and ending work in process.

Cost Per Equivalent Unit:

Conversion

Total Cost

Direct Materials

Direct Labor

Factory Overhead

Beginning Work in Process

$ 3,900,000

$ 1,170,000

$ 780,000

$ 1,950,000

Cost incurred during period

9,300,000

1,860,000

2,325,000

5,115,000

Total cost

$ 13,200,000

$ 3,030,000

$ 3,105,000

$ 7,065,000

Equivalent units

10,400

9,600

9,600

Costs per equivalent unit

$ 291.35

$ 323.44

$ 735.94

$1,059.38

$1,350.72

	Answer sheet
	Cost Allocation:
						Equivalent Units:
							Conversion
				Total Cost		Direct Materials	Direct Labor	Factory Overhead
	Transferred to Finished Goods
	Ending Work in Process
	Total Ending Work in Process
	Total Cost Allocation