Washington, Inc., makes three models of motorized carts forvacation resorts, X-10, X-20, and X-40. Washington manufactures thecarts in two assembly departments: Department A and Department B.All three models are processed initially in Department A, where allmaterial is assembled. The X-10 model is then transferred tofinished goods. After processing in Department A, the X-20 and X-40models are transferred to Department B for final assembly, and thentransferred to finished goods. There were no beginningwork-in-process inventories on April 1. Data for April are shown inthe following table. Ending work in process is 25 percent completein Department A and 60 percent complete in Department B. Conversioncosts are allocated based on the number of equivalent unitsprocessed in each department. Total X-10 X-20 X-40 Units started500 300 200 Units competed in department A 400 260 180 Unitscompleted in department 225 165 Materials 450,000 75,000 135,000240,000 Conversion costs: Department A 264,000 Department B 42,000Total conversion costs 306,000 ?Required: a) What is the unit costof each model transferred to finished goods in April? b) what isthe balance of work-in-process inventory on April 30 for DepartmentA? Department B?
