Transferred-in costs, equivalent unit costs, working backwards. Lennox Plastics has two processes—extrusion and thermo-assembly. Consider the June 2007 data for physical units in the thermo-assembly process: beginning work in process, 16,000 units; transferred in from the Extruding Department during June, 10,000; ending work in process, 6,000. Direct mate¬

rials are added when the process in the Thermo-Assembly Department is 80% complete.

Conversion costs are added evenly during the process. Lennox Plastics uses the FIFO method of process costing. The following information is available.

Transferred-in Costs Direct Materials Conversion Costs Beginning work in process $90,000 __ $45,000 Percentage completion of beginning work in process 100% ——- 60%

Costs added in current period $58,500 $57,000 $57,200 Cost per equivalent unit ofwork done in current period $ 5.85 $ 2.85 $ 4.931 Instructions Form pairs ofstudents to complete the following requirements.

Required 1. For each cost category, compute equivalent units ofwork done in the current period.

2. For each cost category, compute equivalent units of work done to complete beginning work-in-process inventory, to start and complete new units and to produce ending work in process.

3. For each cost categoiy, calculate the percentage of completion of ending work-in-process inventory.

4. Summarize total costs to account for, and assign these costs to units completed (and transferred out) and to units in ending work in process.