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    Accounting
    Zeus Corporation produces cultured diamonds via a secretive process that grows the diamonds in a vacuum chamber filled with a carbon gas cloud. The diamonds are produced in a single continuous process, and Zeus uses the weighted-average process costing method of accounting for production. Below is the company's calculation of cost per equivalent unit for October. During October, the company completed and transferred 8,000 diamonds to finished goods. An additional 4,000 units were still in process at the end of the month. The ending work in process was 60% complete with respect to direct materials and 40% complete with respect to both elements of conversion cost.
    Prepare a schedule showing the allocation of total cost between finished goods and ending work in process.
    Cost Per Equivalent Unit:
    Conversion
    Total Cost Direct Materials Direct Labor Factory Overhead
    Beginning Work in Process $ 3,900,000 $ 1,170,000 $ 780,000 $ 1,950,000
    Cost incurred during period 9,300,000 1,860,000 2,325,000 5,115,000
    Total cost $ 13,200,000 $ 3,030,000 $ 3,105,000 $ 7,065,000
    Equivalent units 10,400 9,600 9,600
    Costs per equivalent unit $ 291.35 $ 323.44 $ 735.94
    		$1,059.38

    $1,350.72
    Answer sheet
    Cost Allocation:
    Equivalent Units:
    Conversion
    Total Cost Direct Materials Direct Labor Factory Overhead
    Transferred to Finished Goods
    Ending Work in Process
    Total Ending Work in Process
    Total Cost Allocation
    Answer & Explanation Solved by verified expert
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