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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. The production process requires constant utilization of facilities and equipment, as well as direct labor by skilled technicians. As a result, direct labor and factory overhead are both deemed to be introduced uniformly throughout production.
Zeus Corporation prepared the following "unit reconciliation" for the month of July:
	Unit Reconciliation:
				Quantity Schedule
	Beginning Work in Process			5,000
	Started into Production			6,000
	Total Units into Production			11,000		Equivalent Units Calculations:
							Conversion
						Direct Materials	Direct Labor	Factory Overhead
	To Finished Goods			8,000		8,000	8,000	8,000
	Ending Work in Process			3,000		1,800	1,500	1,500
	Total Units Reconciled			11,000		9,800	9,500	9,500
						Ending WIP Completion Status: Materials = 60% and Conversion = 50%
The above beginning work in process inventory had an assigned cost of $3,000,000, divided between direct materials (30%), direct labor (20%), and factory overhead (50%).
Additional costs incurred during July were $9,500,000, divided between direct materials (15%), direct labor (25%), and factory overhead (60%).
Answer Sheet Cost Per Equivalent Unit: Conversion Total Cost Direct Materials Direct Labor Factory Overhead Beginning Work in Process Cost incurred during period Total cost Equivalent units Costs per equivalent unit Prepare a schedule showing the calculation of cost per equivalent unit.

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