Brookman Semiconductors experienced the following activity in its Photolithography Department during December. Materials are added at the beginning of the photolithography process.
Units:
Work in process, December 1 (80% of the way through
the process)................................................................................ 5,000 units
Transferred in from the Polishing and Cutting Department
during December..................................................................... 22,000 units
Completed during December........................................................... ? units
Work in process, December 31 (70% of the way through the
process).................................................................................... 8,000 units
Costs:
Work in process, December 1 (transferred-in costs, $21,900;
direct materials costs, $20,750; and conversion costs, $5,540).. $48,190
Transferred in from the Polishing and Cutting Department
during December.......................................................................... 96,900
Direct materials added during December..................................... 57,550
Conversion costs added during December................................... 90,400
Requirements
1. Summarize flow of physical units and compute total equivalent units for three cost categories: transferred-in, direct materials, and conversion costs.
2. Summarize total costs to account for and compute the cost per equivalent unit for each cost category.
3. Assign total costs to (a) units completed and transferred to Finished Goods Inventory and (b) units in December 31 Work in Process Inventory.