Parenzo Company produces digital watches in large quantities. The manufacturing costs of the assembly department were as follows:

For simplicity, assume that this is a two-department company: assembly and finishing. There was no beginning work in process.

Suppose 570,000 units were started in the assembly department. There were 287,000 units completed and transferred to the finishing department. The 283,000 units in ending work in process were fully completed regarding direct materials but one-quarter completed regarding conversion costs.

1. Compute the equivalent units and unit costs in the assembly department.

2. Compute the costs of units completed and transferred to the finishing department. Also compute the cost of the ending work in process in the assembly department.

Transcribed Image Text:

Direct materials added S2,394,00) Conversion costs $561,000 870,000 Direct labor Factory overhead 1,431,00) Assembly costs to account for 3,825,00X