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Fairfax Company uses weighted-average process costing to account for its production costs. Direct labor is added regularly throughout the process. Direct materials are added at the starting of the process. During September, the company transferred 740,000 units of product to finished goods. At the end of September, the goods in process inventory consists of 180,000 units that are 80 percent complete with respect to labor. Starting inventory had $358,800 of direct materials and $198,900 of direct labor cost. The direct labor cost added in September is $3,779,100, and the direct materials cost added is $2,401,200. 1(a) Evaluate the equivalent units of production with respect to direct labor. 1(b) Evaluate the equivalent units of production with respect to direct materials. 2 Determine both the direct labor cost and the direct materials cost per equivalent unit. 3(a) Evaluate both direct labor cost and direct materials cost assigned to units completed and transferred out. 3(b) Calculate both direct labor cost and direct materials cost assigned to ending goods in process inventory.
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