Powell Co. produces a flashlight that goes through four processes before being transferred to finished goods. In the current month information for the pckg department (the last department in its process cost system) is shown below:
Units $ Beginning inventory 60,000 units $75,000.00 cost
100% complete direct material and $60,000 materials cost
20% complete conversion costs and $15,000 conversion cost
Transferred in 600,000 units
Ending inventory 20,000 units
100% complete direct material
30% complete conversion
Transferred out to finished goods 640,000 units
Beginning finished goods 40,000 units $82,000.00
Ending finished goods ---- you must calculate
Costs for Current Month
Direct Material $660,000.00
Conversion Costs $538,900.00
Sold 500,000 units $5.00 each
Marketing and Admin Expense $1,000,000.00
Required
a. Indicate the number of equivalent units produced in the month
b.Indicate the cost per equivalent unit for labor and conversion
c. Prepare an income statement for Oct assuming that the company sold
the beginning finished goods inventory first, then the units produced in the current month
d.Indicate the value of the ending finished goods and ending work in process
e. If per unit costs ran at $2.05 each last period, comment on this period's performance