Question - A department produces cotton fabric. All direct materials are introduced at the start of the process. Conversion costs incurred uniformly throughout the process. In May there was no beginning inventory. Units started, completed, and transferred, 400,000. Units in process, May 31, 80,000. Each unit in ending work in process was 75% converted. Costs incurred during May: direct materials, 4,320,000; conversion costs, 920,000.
A) Compute the total work done in equivalent units and the equivalent unit costs for May -steps 1-3.
B) Compute the cost of units completed and transferred. Also compute the cost of units in ending work in process-Step 4.