3. The Assembly Department uses a process cost accounting system and a weighted average cost flow assumption. The department adds materials at the beginning of the process and incurs conversion costs uniformly throughout the process.

Other data for the month of July are as follows:

Beginning work in

process inventory, 7/1 10,000 units (25% complete)

Units started into

Production 340,000 units

Ending work in

process inventory, 7/31 25,000 units (45% complete)

INSTRUCTIONS

Answer the following questions and show computations to support your answers.

a. Prepare a schedule for July showing the physical unit flow and the units to account for.

b. Compute the equivalent units of production for materials and conversion costs for the month of July.