Watson Products, Inc., produces plastic cases used for video cameras. The product passes through three departments. For May, the following equivalent units schedule was prepared for the first department:

Costs assigned to beginning work in process: direct materials, $30,000; conversion costs, $5,000. Manufacturing costs incurred during May: direct materials, $25,000; conversion costs, $65,000. Watson uses the weighted average method.
Required:
1. Compute the unit cost for May.
2. Determine the cost of ending work in process and the cost of goods transferred out.

Transcribed Image Text:

Direct Materials Conversion Costs Units completed 5,000 5,000 Units, ending work in process x Percentage complete: 6,000 x 100% 6,000 6,000 50% 3,000 Equivalent units of output 11,000 8,000