Reference no: EM132612223

Portal Manufacturing, which began business in 2020, 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 costs are 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.