Vernon Company had a beginning work-in-process inventory of 20,000 units on June 1.
These units contained $60,000 of direct materials and $136,000 of conversion cost.
The following completed (units) 50,000
Ending work in process, 40% complete (units) 15,000
Direct materials used (4) 135,000
Conversion cost (4) 345,000
Vernon uses a weighted-average process-costing system. All materials are added at the start of
manufacturing; in contrast, conversion cost is incurred evenly throughout production.
Required:
A. Compute the total equivalent units for direct material and conversion cost.
B. Compute the cost per equivalent unit of direct material and conversion cost.
C. Determine the cost of completed production.
D. Determine the cost of the June 30 work in process.
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