In: Accounting
Fedora, Inc, uses a weighted-average process-costing system and has one production department. All materials are introduced at the start of manufacturing; in contrast, conversion cost is incurred uniformly throughout production. The company had respective work-in-process inventories on May 1 and May 31 of 63,000 units and 75,000 units, the latter of which was 50% complete. The production supervisor noted that Fedora completed 110,000 units during the month.
Costs in the May 1 work-in-process inventory were subdivided as
follows: materials, $45,000; conversion, $100,000. During May,
Fedora charged production with $510,000 of material and $810,000 of
conversion, resulting in a material cost per equivalent unit of
$3.00.
Required: