At the start of July classic car wax company had beginning Work in Process of 2500 units that were 90% completed with respect to matherial and 45% completed
with respect to conversion costs. The cost of the units was $7000($5000 material and 2000 of conversion costs.) During the month the company started
production of 40000 units and incurred $224500 of material cost and $91750 of labor and overheade. Costs per equivalent unit were $6.00 for material and
$2.50 for labor and overhead (conversion cost.) The cost of items completed was $314500 ($222000 for materials and $92500 for labor and overhead. Units in
ending work in process are 25% complete with respect to material and 10% complete with respect to conversion costs.