Portal Manufacturing, Which Began Business in 2011, Uses a Weighted-Average $\quad$

question 39

Essay

Portal Manufacturing, which began business in 2011, uses a weighted-average process-costing system. The following figures pertain to July: $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$$\underline {\text { Physical }}$ $\quad$ $\quad$$\underline {\text { Equivalent Tonts }}$

$\begin{array}{lrr}& \underline { \text { Units } }& \underline{\text { Materials }} & \underline{\text { Conversion }} \\\text { Units completed } &120,000 & 120,000 & 120,000 \\\text { Ending work in process } & 40,000 & 40,000 & 18,000\end{array}$ 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:
A. Calculate the direct materials cost per equivalent unit.
B. Calculate the cost of units completed and transferred.
C. What percentage of conversion work will be performed on the 40,000-unit ending work-in-process inventory during August?
D. In all likelihood, were all of the 120,000 completed units begun in July? Explain.