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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 500 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. Six 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.
Required:
a. Calculate the cost per equivalent unit for each of the three cost items and in total.
b. Calculate the cost of items completed in August and the cost of ending Work in Process inventory.
c. Reconcile the sum of the two costs in part b to the sum of beginning Work in Process and costs added in August.
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