The inventory at June 1 and costs charged to Work in Process—Department 60 during June are as follows: 3,800 units, 60% completed $ 60,400
Direct materials, 32,000 units 378,000
Direct labor 274,000
Factory overhead 168,000
Total cost to be accounted for $880,400

During June, 32,000 units were placed into production and 31,200 units were completed, including those in inventory on June 1. On June 30, the inventory of work in process consisted of 4,600 units which were 85% completed. Inventories are costed by the first-in, first-out method and all materials are added at the beginning of the process.

Determine the following (Round unit cost data to four decimal places to minimize rounding differences):

a. Equivalent units of production for conversion cost.

b. Conversion cost per equivalent unit: (Round to four decimal places.)

c. Total and unit cost of finished goods started in prior period and completed in the current period
Total cost (Round to the nearest dollar.)
Unit cost (Round to four decimal places.)

d. Total and unit cost of finished goods started and completed in the current period
Total cost (Round to the nearest dollar.)
Unit cost (Round to four decimal places.)

e. Total cost of work in process inventory, June 30 (Round to the nearest dollar.)

For each of the following situations, indicate whether you agree or disagree with the financial reporting practice employed and state the basic assumption, component, or accounting principle that is applied (if you agree) or violated (if you disagree).wagner corporation adjusted the valuation of all assets and liabilities to reflect changes in the purchasing power of the dollar. spooner oil company changed its method of accounting for oil and gas exploration costs from successful efforts to full cost. no mention of the change was included in the financial statements. the change had a material effect on spooner's financial statements. cypress manufacturing company purchased machinery having a five-year life. the cost of the machinery is being expensed over the life of the machinery. rudeen corporation purchased equipment for $180,000 at a liquidation sale of a competitor. because the equipment was worth $230,000, rudeen valued the equipment in its subsequent balance sheet at $230,000.davis bicycle company received a large order for the sale of 1,000 bicycles at $100 each. the customer paid davis the entire amount of $100,000 on march 15. however, davis did not record any revenue until april 17, the date the bicycles were delivered to the customer. gigantic corporation purchased two small calculators at a cost of $32.00. the cost of the calculators was expensed even though they had a three-year estimated useful life. esquire company provides financial statements to external users every three years.