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The Assembly Department of Crackle Surge Protectors began September with no work in process inventory. During the month, production that cost $64,434 (direct materials, $12,954, and conversion costs, $51,480) was started on 31,000 units. Crackle completed and transferred to the Testing Department a total of 23,000 units. The ending work in process inventory was 30% complete as to direct materials and 70% complete as to conversion work.
Requirements
1. Compute the equivalent units for direct materials and conversion costs.
2. Compute the cost per equivalent unit.
3. Assign the costs to units completed and transferred out and ending work in process inventory.
4. Record the journal entry for the costs transferred out of the Assembly Department to the Testing Department.
5. Post all of the transactions in the "Work in Process Inventory-Assembly" T-account. What is the ending balance?
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