Question - The Nebraska Company manufactures a product that goes through three processing departments. Information relating to activity in the first department during June is given below.
|
|
Percentage Completed
|
|
Units
|
Materials
|
Conversion
|
|
Work in process, June 1
|
140,000
|
65%
|
45%
|
|
Work in process, Jun 30
|
120,000
|
75%
|
65%
|
The department started 580,000 units into production during the month and transferred 600,000 completed units to the next department.
Required: Compute the equivalent units of production for the first department for June, assuming that the company uses the weighted-average method of accounting for units and costs. If the cost per equivalent unit is $0.85 and the cost per equivalent units for conversion is $1.10, what is the total cost of the equivalent units?