Bond Company uses the weighted average method for its process costing system. Bond has two departments—Sanding and Painting. The Sanding Department transfers units to the Painting Department, and the Painting Department transfers units to Finished Goods Inventory.

The Painting Department at Bond Company began June with 40,000 units in Work in Process Inventory, all of which were completed and transferred out during June. An additional 45,000 units were transferred in during the month, 15,000 of which were completed and transferred out during June. A total of 30,000 units remained in Work in Process Inventory at the end of June and were at varying levels of completion, as shown below.

Direct materials: 80 percent complete Direct labor: 90 percent complete Overhead: 90 percent complete Transferred in: 100 percent complete The following cost information is for the Painting Department at Bond Company for the month of June:

Required

a. Determine the units to be accounted for and units accounted for; then calculate the equivalent units for direct materials, direct labor, overhead, and transferred-in costs. This requires that you perform step 1 of the four-step process.

b. Calculate the cost per equivalent unit for direct materials, direct labor, overhead, and transferred-in costs. This requires performing steps 2 and 3 of the four-step process.

c. Assign costs to units transferred out and to units in ending WIP Inventory. This requires performing step 4 of the four-step process.

d. Confirm that total costs to be accounted for (from step 2) equals total costs accounted for (from step 4). Note that minor differences may occur due to rounding the cost per equivalent unit in step 3.

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Direct Direct Trans. Materials Labor Overhead In Total Beginning WIP Inventory $700,000 $550,000 $850,000 $900,000 $3,000,000 Incurred during the month 625,000 460,000 715,000 860,000 2,660,000