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1. At the start of November, Penco Refinery had Work in Process inventory consisting of 4,000 units that were 90 percent complete with respect to materials and 50 percent complete with respect to conversion costs.The cost of the units was $38,000 ($25,000 of material cost and $13,000 of labor and overhead). During November, the company started 44,000 units and incurred $421,970 of material cost and $394,880 of labor and overhead. The company completed 45,000 units during the month, and 3,000 units were in process at the end of November. The units in ending Work in Process were 85 percent complete with respect to materials and 45 percent complete with respect to conversion costs.
Required:
a. Calculate the cost per equivalent unit for materials and conversion costs.b. Calculate the cost of items completed during November.c. Calculate the cost of ending Work in Process.
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