Assignment task: Shiffon Electronics manufactures music player. It's costing system uses two cost categories, direct materials and conversion costs. Each product must pass through the Assembly Department, the Programming department, and the Testing Department. Direct materials are added at the beginning of the production process. Conversion costs are allocated evenly throughout production. Shiffon Electronics uses weighted-average costing.
The following information is available for the month of March 2017 for the Assembly department.
Work in process, beginning inventory 340 units
Conversion costs (25% )
Units started during March 860 units
Work in process, ending inventory: 140 units
Conversion costs (60% )
The cost details for the month of March are as follows:
Work in process, beginning inventory:
Direct materials $349,000
Conversion costs $360,000
Direct materials costs added during March $703,500
Conversion costs added during March $1,130,000
Compute the following using average method:
1. Units completed and transferred out.
2. Total cost to account for.
3. Equivalent units with respect to direct materials and conversion costs.
4. Cost per direct materials equivalent units and cost per conversion cost equivalent units.
5. Total cost assigned to units completed and transferred out.
6. Total cost assigned to units in ending inventory.