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Question - The Nebraska Company manufactures a product that goes through three processing departments. Information relating to activity in the first department during June is given below.
Percentage Completed
Units
Materials
Conversion
Work in process, June 1
140,000
65%
45%
Work in process, Jun 30
120,000
75%
The department started 580,000 units into production during the month and transferred 600,000 completed units to the next department.
Required: Compute the equivalent units of production for the first department for June, assuming that the company uses the weighted-average method of accounting for units and costs. If the cost per equivalent unit is $0.85 and the cost per equivalent units for conversion is $1.10, what is the total cost of the equivalent units?
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