P21-6A EZ Lift uses three processes to manufacture lifts for personal watercraft: forming the lift's parts from galvanized steel, assembling the lift, and testing the completed lifts. The lifts are transferred to finished goods before shipment to marinas across the country. EZ Lift's Testing Department requires no direct materials. Other process costing informa- tion follows: Units: Beginning work in process (60% complete as to conversion work)... Transferred in from the Assembling Department during the period.... Completed during the period. Ending work in process (40% complete as to conversion work).. Costs: Beginning work in process. 2,000 units 7,000 units 4.000 units 5,000 units $111,000 Transferred in from the Assembling Department during the period... 672.000 Conversion costs added during the period. 48,000 The cost transferred into Finished Goods Inventory is the cost of the lifts transferred out of the Testing Department. EZ Lift uses FIFO process costing. Required 1. Draw a time line for the Testing Department, similar to the one in Exhibit 21-11. 2. Use the time line to compute the number of equivalent units of work performed by the Testing Department during the period, the cost per equivalent unit, and total costs to account for 3. Assign total cost to

(a) units completed and transferred out of Testing, and

(b) units in Testing's ending work in process inventory. 4. Compute the cost per unit for lifts completed and transferred out to Finished Goods Inventory. Why would management be interested in this cost?