Question Completion:
Costs incurred in August:
Direct materials	$154,000
Conversion costs $264,000
Answer:
Badgersize Company
                                           Materials      Conversion
a. Equivalent units              74,000          69,500
b. Cost per equivalent unit $3.162          $4.144
Explanation:
a) Data and Calculations:
                                             Units      Materials      Conversion      Total
Beginning WIP inventory   20,000       100%              20%
Units started  August        54,000
Total units available          74,000
Transferred out                 59,000
Ending WIP inventory        15,000       100%                70%
Cost of beginning WIP                     $80,000          $24,000       $104,000
Costs incurred in August                 154,000          264,000          418,000
Total production costs                  $234,000        $288,000      $522,000
Equivalent unit             Units      Materials      Conversion
Units transferred out  59,000     59,000          59,000
Ending WIP inventory  15,000      15,000           10,500
Equivalent units                            74,000          69,500
Cost per equivalent unit
Total production costs           $234,000      $288,000 
Equivalent units                          74,000          69,500
Cost per equivalent unit         $3.162              $4.144