Homework: Comprehensive Problem, One Department
Marquita Filters produces an air filter for use in jet aircraft. Parts are added at several points in the production process. In August, production began with 600 filters in Work in Process, 80 percent complete as to materials and 70 percent complete as to labor and overhead. During the month, an additional 2,700 units were started into production. Seven hundred filters were in Work in Process at the end of the month, and they were 70 percent complete as to materials and 60 percent complete as to labor and overhead.
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Cost Information for August
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Beginning Work in Process Inventory
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Cost Added in August
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Direct material
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$ 45,000
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$267,090
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Direct labor
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11,000
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76,580
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Manufacturing overhead
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80,000
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496,820
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Total
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$136,000
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$840,490
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Task
• Calculate the cost per equivalent unit for each of the three cost items and in total.
• Calculate the cost of items completed in August and the cost of ending Work in Process inventory.
• Reconcile the sum of the two costs in part b to the sum of beginning Work in Process and costs added in August.
Format your homework according to the give formatting requirements:
1. The answer must be double spaced, typed, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also includes a cover page containing the title of the homework, the course title, the student's name, and the date. The cover page is not included in the required page length.
3. Also include a reference page. The references and Citations should follow APA format. The reference page is not included in the required page length.