Goldman Company uses three departments to produce handles for kitchen cabinets. Forming the handles requires mixing the raw materials, molding, and drying.

Goldman's Drying Department requires no direct materials. Conversion costs are incurred evenly throughout the drying process. Other information follows:

After the drying process, the handles are packaged for shipment to retail outlets. Goldman uses weighted arerage process costing.

Requirements 

1. Draw a time line of the Drying Department's process for the period.

2. Use the time line to compute the number of equivalent units of work performed by the Drying Department during the period.

3. Compute Goldman's transferred-in and conversion costs per equivalent unit. Use the unit costs to assign total costs to

(a) units completed and transferred to the assembly operation and

(b) units in the Drying Department's ending work in process inventory.

Transcribed Image Text:

Units: Beginning work in process Transferred in from the Molding Department during the period Completed during the period Ending work in process (20% complete as to conversion work) Costs: Beginning work in process (transferred-in cost, $140; conversion cost, $231) Transferred in from the Molding Department during the period Conversion costs added during the period 7,000 units 28,000 units 16,000 units 19,000 units $ 371 4,760 2,937