Answer:
a.
Equivalent Units : Materials = 696,200 units and Conversion Costs = 680,960 units
Cost per unit : Materials = $2.40 and Conversion Costs = $0.90
b.
goods transferred out = $2,213,640
goods in process = $70,104
c.
<u>Production cost report for the assembly department</u>
Inputs :
Opening Balance $127,300
Costs added during the year :
Materials $1,592,280
Labor $225,100
Overhead $ 339,064
Total Costs $2,283,744
Outputs :
Completed and Transferred Out $2,213,640
Ending Work In Process $70,104
Total Costs $2,283,744
Explanation:
First, calculated the number of units completed and transferred to finished goods.
Number of units completed and transferred = Beginning Inventory Units + Units Started during the period - Ending Inventory Units
Number of units completed and transferred = 35,200 units + 661,000 units - 25,400 units
= 670,800 units
<u>Calculation of Equivalent Units of Production with Respect to Raw Materials and Conversion Costs.</u>
1. Materials
Ending Work In Process (25,400 × 100%) = 25,400
Completed and Transferred (670,800 × 100%) = 670,800
Equivalent Units of Production with Respect to Raw Materials = 696,200
2. Conversion Costs
Ending Work In Process (25,400 × 40%) = 10,160
Completed and Transferred (670,800 × 100%) = 670,800
Equivalent Units of Production in Conversion Costs = 680,960
<u>Calculation of Total Unit Cost </u>
Unit Cost = Total Costs ÷ Total Equivalent Units
1. Materials
Unit Cost = ($78,600 + $1,592,280) ÷ 696,200
= $2.40
2. Conversion Costs
Unit Cost = ($48,700 + $225,100 + $339,064 ) ÷ 680,960
= $0.90
3. Total Unit Cost
Total Unit Cost = Materials + Conversion Costs
= $2.40 + $0.90
= $3.30
<u>Calculation of costs assigned to goods transferred out and in process.</u>
Goods transferred out = Units completed and transferred × total unit cost
= 670,800 × $3.30
= $2,213,640
Units in Process = Material Costs + Conversion Cost
= (25,400 × $2.40) + (10,160 × $0.90)
= $70,104
