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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 % complete with respect to conversion costs. The costs of the units were $43,000 ($13,000 of labor and overhead and $30,000 of material cost). During November, the company started 44,000 units and incurred $394,880 of labor and $421,990 of material cost and overhead. The company completed 45,000 units trough this month, and 3,000 units were in process at the end of November. The units in competing Work in Process were 85% complete with respect to materials and 45 percent complete with respect to conversion costs.
a. Evaluate the cost per equivalent unit for materials and conversion costs.
b. Determine the cost of items completed during November.
c. Determine the cost of ending Work in Process.
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