O'Farrell Manufacturing Inc. uses a weighted-average process-costing system and has one production department. All materials are introduced at the start of manufacturing; in contrast, conversion costs are incurred uniformly throughout production. The company had respective work-in-process inventories on July 1 and July 31 of 80,000 units and 90,000 units, the latter of which was 50% complete. The production supervisor noted that O'Farrell completed 120,000 units during the month.
Costs in the July 1 work-in-process inventory were subdivided as follows: materials, $50,000; conversion, $30,000. During July, O'Farrell charged production with $460,000 of material and $810,000 of conversion, resulting in a material cost per equivalent unit of $2.
Required:
A. Determine the number of units that O'Farrell started during July.
B. Compute the number of equivalent units with respect to conversion cost.
C. Determine the conversion cost per equivalent unit.
D. Compute the cost of the July 31 work-in-process inventory.
E. What account would have been credited to record O'Farrell's completed production?

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The Answer of O'Farrell Manufacturing Inc. uses a weighted-average process-costing system and has one production department. All materials are introduced at the start of manufacturing; in contrast, conversion costs are incurred uniformly throughout production. The company had respective work-in-process inventories on July 1 and July 31 of 80,000 units and 90,000 units, the latter of which was 50% complete. The production supervisor noted that O'Farrell completed 120,000 units during the month.
Costs in the July 1 work-in-process inventory were subdivided as follows: materials, $50,000; conversion, $30,000. During July, O'Farrell charged production with $460,000 of material and $810,000 of conversion, resulting in a material cost per equivalent unit of $2.
Required:
A. Determine the number of units that O'Farrell started during July.
B. Compute the number of equivalent units with respect to conversion cost.
C. Determine the conversion cost per equivalent unit.
D. Compute the cost of the July 31 work-in-process inventory.
E. What account would have been credited to record O'Farrell's completed production?