The Byrnes Corporation is a manufacturer of a chronograph wristwatch and uses the weighted-average method of process costing. Materials are added to production at the beginning of the manufacturing process, and overhead is applied to each product at the rate of 70 percent fo direct labor cost. There was no finished goods inventory at the beginning of the current year. The ending inventory is 40 percent complete as tolabor and overhead. A review of the inventory cost records shows the following information:
Units Materials Conversion
work in process Jan. 1
80% complete as to labor and overhead 100,000 $350,000 $510,000
Units started 500,000 $700,000 $1,428,000
Units completed 550,000
a. what are the equivalent units of production using weighted average method?
b. what are the unit costs of production of materials, labor, and overhead?
c. what is the cost of the finished goods inventory and work in process inventory?
The response contains an attached Excel file. This is now a template for other similar problems.