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E3-8 The Blending Department of Luongo

Price: $1.99

E3-8 The Blending Department of Luongo Company has the following cost and production
data for the month of April.

Work in process, April 1
   Direct materials: 100% complete  100,000
   Conversion costs: 20% complete  70,000
Cost of work in process, April 1  170,000
Costs incurred during production in April
   Direct materials  800,000
   Conversion costs  365,000
Costs incurred in April   1,165,000

Units transferred out totaled 17,000. Ending work in process was 1,000 units that are
100% complete as to materials and 40% complete as to conversion costs.

(a) Compute the equivalent units of production for (1) materials and (2) conversion costs
for the month of April.
(b) Compute the unit costs for the month.
(c) Determine the costs to be assigned to the units transferred out and in ending work in

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