Hassan Company produces digital watches in large quantities. The manufacturing costs of the assembly department were

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

Suppose 700,000 units were begun in the assembly department. There were 400,000 units completed and transferred to the finishing department. The 300,000 units in ending work-in-process were fully completed regarding direct materials but half-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 Conversion costs $1,750,000 Direct labour $550,000 Factory overhead Assembly costs to account for 687,500 137,500 $2,437,500