Chapter 21, Problem 21.9E

(a)

To determine

Equivalent Units of Production: It is a measure to record a processing department’s activity on the basis of total completed units produced. Work in process units are converted into full units and added to completed or transferred out production to find the equivalents units of production.

Conversion Cost: The cost that includes direct labor and factory overheads is reported as conversion cost because it processed the raw material to the next level that work in process or finished goods.

To compute: The equivalent units of production for material and for conversion costs.

(b)

To determine

The unit costs of production.

(c)

To determine

To prepare: The statement of cost assigned to units transferred out and in process.