Trying to do the following:
a. Calculate the cost per equivalent unit for each of the 3 cost items and in total.
b. Calculate the cost of items completed in Aug and the cost of ending work in process inventory.
c. Reconcile the sum of the 2 costs in part b to the sum of beginning WIP and costs added in Aug
Cost info for aug: Beg WIP Invetory Cost added in Aug
Direct material $48,000 $317,400
Direct labor 12,600 94,500
Manu. overhead 84,000 590,900
Total 144,600 1,002,800
Aug production began with 600 filters in WIP, 80 % complete as to materials and 70 % complete as to labor and overhead. During the month an additional 3,200 units were started into production. 800 were in WIP at the end of the month, and they were 60% complete as to materials and 50% complete as to labor and overhead.
The solution explains how to prepare a production cost report and use it to calculate the equivalent units and assign the costs to units transferred and units in ending inventory.