Assembly Department uses a process cost accounting system and aweighted-average cost flow assumption. The department addsmaterials at the beginning of the process and incurs conversioncosts uniformly throughout the process. During July, $190,000 ofmaterials costs and $135,500 in conversion costs were charged tothe department. The beginning work in process inventory was $93,000on July 1, comprised of $80,000 of materials costs and $13,000 ofconversion costs.
Other data for the month of July are as follows:
Beginning work in process inventory, 7/1 25,000 units (40%complete)
Units completed and transferred out 90,000 units
Ending work in process inventory 7/31 30,000 units (30%complete)
Instructions
Answer the following questions and show computations to supportyour answers.
1. How many physical units have to be accounted for in July?
2. What are the equivalent units of production for materials andfor conversion costs for the month of July?
3. What is the total cost assigned to the 90,000 units that weretransferred out of the process in July?
4. What is the remaining total cost of inventory within theAssembly department as of July 31?
