Chapter 4, Problem 25P

Timing Technology, Inc. manufactures timing devices. During 20x1, 900,000 units were completed and transferred to finished-goods inventory. On December 31, 20x1 there were 300,000 units in work in process. These units were 50 percent complete as to conversion and 100 percent complete as to direct material. Finished-goods inventory consisted of 200,000 units. Materials are added to production at the beginning of the manufacturing process, and overhead is applied to each product at the rate of 60 percent of direct-labor costs. There was no finished-goods inventory on January 1, 20x1. A review of the inventory cost records disclosed the following information:

Required: Prepare schedules as of December 31, 20x1, to compute the following:

1. 1. Physical flow of units.
2. 2. Equivalent units of production using the weighted-average method.
3. 3. Costs per equivalent unit for material and conversion.
4. 4. Cost of the December 31, 20x1, finished-goods inventory and work-in-process inventory.