"Zeus Corporation produces cultured diamonds via a secretive process that grows the diamonds in a vacuum chamber filled with a carbon gas cloud. The diamonds are produced in a single continuous process, and Zeus uses the weighted-average process costing method of accounting for production.

Zeus Corporation produces cultured diamonds via a secretive process that grows the diamonds in a vacuum chamber filled with a carbon gas cloud. The diamonds are produced in a single continuous process, and Zeus uses the weighted-average process costing method of accounting for production. Below is the company’s calculation of cost per equivalent unit for October. During October, the company completed and transferred 8,000 diamonds to finished goods. An additional 4,000 units were still in process at the end of the month. The ending work in process was 60% complete with respect to direct materials and 40% complete with respect to both elements of conversion cost.
Prepare a schedule showing the allocation of total cost between finished goods and ending work in process.
	Cost Per Equivalent Unit:
				Conversion
		Total Cost	Direct Materials	Direct Labor	Factory Overhead
	Beginning Work in Process	$ 3,900,000	$ 1,170,000	$ 780,000	$ 1,950,000
	Cost incurred during period	9,300,000	1,860,000	2,325,000	5,115,000
	Total cost	$ 13,200,000	$ 3,030,000	$ 3,105,000	$ 7,065,000
	Equivalent units		÷ 10,400	÷ 9,600	÷ 9,600
	Costs per equivalent unit		$ 291.35	$ 323.44	$ 735.94

				$1,059.38
			$1,350.72

“Zeus Corporation produces cultured diamonds via a secretive process that grows the diamonds in a vacuum chamber filled with a carbon gas cloud. The diamonds are produced in a single continuous process, and Zeus uses the weighted-average process costing method of accounting for production.