Answer and Explanation:
The computation is shown below:
a. 
1. Calculation of the equivalent units
<u>Particulars         Physical units   %     Material   %      Conversion cost</u>
Units transferred
out                          900             100%    900     100%     900
Ending 
work in process     600            100%     600     40%       240
Equivalent
units                                                        1,500                  1,140
2. Cost per equivalent unit is 
Particulars         Material      Conversion cost
Beginning 
inventory           $750               $600
Cost during 
period                $2,400            $2,820
Total cost          $3,150             $3,420
Divided by 
Equivalent
units                   $1,500            $1,140
Cost per 
equivalent unit    $2.1              $3
3. Transferred out cost is 
= (3 + 2.1) × 900 
= $4,590
And, the ending work in process cost is 
= (600 ×$2.1) + (240 × $3)
= $1,960
2. Now the preparation of the production report is presented below:
Beginning work in process       $1,350
Cost during period                    $5,220
Total cost accounted for           $6,570
Transferred out cost                   $4,590
Ending work in process              $1,960
Total cost accounted as             $6,570