Reutter Company manufactures a single product and uses process costing. The company’s product goes through two processing departments, Etching and Wiring. The following activity was recorded in the Etching Department during July:

Question

Materials are added at several stages during the etching process. The company uses the FIFO method.
Required:
1. Determine the equivalent units for July for the Etching Department.
2. Compute the costs per equivalent unit for July for the Etching Department.
3. Determine the total cost of ending work in process inventory and the total cost of units transferred to the next process for the Etching Department in July.