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Jones Company manufactures a single product and uses process costing (FIFO method). The companys

product goes through two processing departments, Etching and Wiring. The following activity was

recorded in the Etching Department during July:

Production data:

Units in process, July 1 (materials 60% complete; conversion 30% complete) . . . . . 50,000

Units started into production . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 500,000

Units in process, July 31 (materials 80% complete; conversion 40% complete) . . . . 60,000

Cost data:

Work in process inventory, July 1:

Materials cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 17,000

Conversion cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3,000

Cost added during July:

Materials cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $457,200

Conversion cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $349,300

Materials are added at several stages during the etching process. The company uses the FIFO method.

Required:

1. Compute the equivalent units of production.

2. Compute the costs per equivalent unit for July.

3. Determine the cost of ending work in process inventory and of the units transferred to the Wiring

Department.

4. Prepare a cost reconciliation between the costs determined in (3) above and the cost of beginning

inventory and costs added during the period

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