The Assembly Department uses a process cost accounting systemand a weighted-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 $137,100 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 asfollows:
Beginning work in process inventory,7/1 25,000 units (40% complete)
Units completed and transferred out 70,000 units
Ending work in process inventory, 7/31 30,000 units (30% complete)
Answer the following questions and show computations tosupport your answers.
1. How many physical units have to be accounted forin July?
2. What are the equivalent units of production formaterials and for conversion costs for the month of July?
3. What is the total cost assigned to the 70,000units that were transferred out of the process in July?
4. What is the total cost of the July 31inventory?
