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Problem - A department of Rotterdam Textiles produces cotton fabric. All direct materials are introduced at the start of the process. Conversion costs are incurred uniformly throughout the process.
In April, there was no beginning inventory. Units started, completed, and transferred were 690,000. Units in process on April 30 were 238,000. Each unit in ending work in process was 50% converted. Costs incurred during April were direct materials at $4,454,400 and conversion costs at $1,537,100.
Requirements -
1. Compute the total work done in equivalent units and the unit cost for April.
2. Compute the cost of units completed and transferred. Also compute the cost of units in ending work in process.
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