Question 1:
Blue-Red Company started 7,400 units during the month of March. There were 1,880 units in
the beginning work in process inventory and 2,880 units in the ending work in process
inventory. Calculate units completed and transferred out during March.
Units completed and transferred out:
Question 2:
Montreal Manufacturing Inc. has the following cost and production data for the month of April.
Beginning WIP 20,000 units
Started in production 104,000
Completed production 94,300
Ending WIP 29,700
The beginning inventory was 60% complete for conversion costs. The ending inventory was 40%
complete for conversion costs. Materials are added at the beginning of process.
Costs pertaining to the month of April are as follows:
Beginning Inventory cost are:
Materials $64,100
Direct labour 20,500
Factory overhead 14,200
Cost incurred in April include:
Materials $57200
Direct labour 190,200
Facotry Overhead 389,007
A: Calculate the equivalent units of production for materials and conversion costs for the month
of April using the first-in, first-out (FIFO) method.

Conversion cost

Total equivalent units
B: Calculate the unit cost for the month
Unit cost
Conversion cost
The unit cost for the month


C: Determine the costs to be assigned to the units transferred out and in ending work in
Beginning inventory
Complete beginning
Started and
Cost of units
transferred out
Ending work of
Total cost