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Miller Company manufacturers a product for which materials are added at the beginning of the manufacturing process. A review of the company's inventory and cost records for the most recently completed year revealed the following information:Work in process, Jan. 1 -Units 100,000/ Materials $100,000/Conversion $157,500.Units started into production- Units 500,000Cost added during the year:
The company uses the weighted-average cost method in its process costing system. The ending inventory is 50% complete with respect to conversion costs.
Required:
a. Compute the equivalent units of production and the cost per equivalent units for materials and for conversion costs.b. Determine the cost transferred to finish goods.c. Determine the amount of cost that should be assigned to the ending work in process inventory.
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