Normal spoiled units at the beginning of processing Craftison, Inc. makes and sells bilge pumps. In the final assembly process necessary fittings and valves are added to the main pump unit, and the pump is packaged. The pumps are each tested as they enter the Assembly depart- ment. Any unit that does not generate the standard level of pressure is discarded, and the substandard units are treated as normal lost units. October production and cost data for Assem- bly are presented below.

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Beginning work in process: 3,000 units with all materials and 3 conversion. Beginning work in process cost: Preceding department, $36,120 Direct materials, $14,760 Direct labor, $3,880 Manufacturing overhead, $5,940 Current period manufacturing costs: 9,000 units transferred into Assembly during October: Preceding department costs, $109,080 Direct materials, $40,240 Direct labor, $12,120 Manufacturing overhead, $18,060