The Sinestro Company manufactures electric drills. Material is introduced at the beginning of the process in the assembly department. Conversion...
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The Sinestro Company manufactures electric drills. Material is introduced at the beginning of the process in the assembly department. Conversion costs are applied uniformly throughout the process. As the process is completed, goods are immediately transferred to the finishing
department. Data for the assembly department for the month of July 20X1 follow:
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Requirements
1.
Compute the total cost of goods transferred out of the assembly department during July.
Compute the total costs of the ending work in process. Prepare a production-cost report or a similar orderly tabulation of your work. Assume weighted-average product costing.
Requirements 1. and 2. Compute the total cost of goods transferred out of the assembly department during July. Compute the total costs of the ending work in process. Assume weighted-average product costing.
Begin by computing the equivalent units.
Equivalent Units
Data Table
- X
Physical
Direct
Flow of Production
Units
Materials
Conversion
Work in process, June 30, 20X1
Work in process, June 30: $99,500 (consisting of $59,500 materials and
Started in July 20X1
$40,000 conversion costs); 100% completed for direct materials, but only
40% completed for conversion costs
7,000 units
Units to account for
Units started during July
70,000 units
Completed and transferred out
Units completed during July
47,000 units
Work in process, July 31, 20X1
Work in process, July 31: 100% completed for direct materials, but only 40%
Units accounted for
completed for conversion costs
30,000 units
Work done to date
Direct materials added during July
$
595,000
Conversion costs added during July
432,000
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