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Question - Hamby Company had 250 units of product in its work in process inventory at the beginning of the period and started 2,000 additional units during the period. At the end of the period, 750 units were in work in process inventory. The ending work in process inventory was estimated to be 60 percent complete. The cost of work in process inventory at the beginning of the period was $3,420, and $27,000 of product costs was added during the period.
Prepare a cost of production report showing the following.
a. The number of equivalent units of production.
b. The product cost per equivalent unit.
c. The total cost allocated between the ending Work in Process Inventory and Finished Goods Inventory accounts.
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