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6-38 Weighted-Average MethodGifford, Inc. produces a single model of a popular cell phone in large quantities. A single cell phone moves through two departments, assembly and testing. The manufac- turing costs in the assembly department during March follow:
Direct materials added
$187,500
Conversion costs
165,410
$352,910
The assembly department has no beginning work-in-process inventory. During the month, it started 25,000 cell phones, but only 22,000 were fully completed and transferred to the testing depart- ment. All parts had been made and placed in the remaining 3,000 cell phones, but only 60 percent of the conversion had been completed. The company uses the weighted-average method of process costing to accumulate product costs.
1. Compute the equivalent units and cost per equivalent unit for March in the assembly department.
2. Compute the costs of units completed and transferred to the testing department.
3. Compute the costs of the ending work-in-process.
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