Question

uses three processes to manufacture lifts for personal​ watercraft: forming a​ lift's parts from galvanized​steel, assembling the​ lift, and testing the completed lift.

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​(Click the icon to view additional​ information.)The cost transferred into Finished Goods Inventory is the cost of the lifts transferred out of the Testing Department.

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uses​ weighted-average process costing.Read the requirements

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Requirement 1. Prepare a production cost report for the Testing Department.​ (Round all cost per unit amounts to the nearest cent and all other amounts to the nearest whole dollar. Abbreviation​ used: EUP​ = equivalent units of​ production.)

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Production Cost Report-Testing Department
Month Ended August 31
		Equivalent Units
	Physical	Transferred	Direct	Conversion
UNITS	Units	In	Materials	Costs
Units to account for:
Beginning work-in-process	1,700
Transferred in	7,400
Total units to account for	9,100
Units accounted for:
Completed and transferred out	4,300	4,300	n/a	4,300
Ending work-in-process	4,800	4,800	n/a	1,920
Total units accounted for	9,100	9,100	n/a	6,220

		Transferred	Direct	Conversion	Total
COSTS		In	Materials	Costs	Costs
Costs to account for:
Beginning work-in-process		$96,000	n/a	$13,000	$109,000
Costs added during the period		641,100	n/a	80,300	721,400
Total costs to account for		$737,100	n/a	$93,300	$830,400
Divided by: Total EUP		9,100	n/a	6,220
Cost per equivalent unit		$81.00	n/a	$15.00

Costs accounted for:
Completed and transferred out	348,300	n/a
Ending work-in-process	388,800	n/a
Total costs accounted for	737,100	n/a

Choose from any list or enter any number in the input fields and then click Check Answer.

Answer 1

Requirement 1 (remaining portion)

	Transferered In	Direct material	Conversion cost	Total cost
Cost Accounted For:
Completed and transferred out	(4,300 units × $81 = $348300)	n/a	(4,300 units × $15 = $64,500)	$412,800
Ending Work in process	(4,800 units × $81 = $388800)	n/a	(4,800 units × $15 = $72,000)	$460,800
Total Costs Accounted for	$737,100		$136,500	$873,600

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Req. 2

Cost per lift = Total cost / units completed

= $412,800 / 4300 units

= $96 per unit