Reference no: EM132614784

Portofina Manufacturing uses a weighted-average process-costing system. The following figures pertain to July:

                                                      Physical                    Equivalent

                                               Units                   Units              Materials Conversion

Units completed                       120,000                  120,000             120,000

Ending work in process               40,000                       40,000            18,000

All materials are introduced at the start of the process, and conversion cost is incurred evenly throughout production. The company used direct materials that cost $640,000; conversion amounted to $8 per equivalent unit.

Required:

Question A. Calculate the direct materials cost per equivalent unit.

Question B. Calculate the cost of units completed and transferred.

Question C. What percentage of conversion work will be performed on the 40,000-unit ending work-in-process inventory during August?

Question D. In all likelihood, were all of the 120,000 completed units begun in July? Explain.