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AquaMate uses three processes to manufacture lifts for personal watercraft: forming a lift's parts from galvanized steel, assembling the lift, and testing the completed lift.

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AquaMate uses three processes to manufacture lifts for personal watercraft: forming a lift's parts from galvanized steel, assembling the lift, and testing the completed lift. (Click the icon to view additional information.) The cost transferred into Finished Goods Inventory is the cost of the lifts transferred out of the Testing Department. AquaMate uses weighted average process costing Read the requirements Requirement 1. Prepare a production cost report for the Testing Department. (Round all cost per unit amounts to the nearest cent and all other amounts to the nearest whole dollar. Abbreviation used: EUP = equivalent units of production) AquaMate Production Cost Report-Testing Department Month Ended August 31 Equivalent Units Physical Transferred Direct Conversion Units in Materials Costs UNITS Units to account for: Total units to account for Units accounted for: na na wa Total units accounted for 0 More Info The lifts are transferred to Finished Goods Inventory before shipment to marinas across the country. AquaMate's Testing Department requires no direct materials. Conversion costs are incurred evenly throughout the testing process. Other information follows for the month of August: 1,600 units 7,400 units 3,600 units 5,400 units UNITS Beginning Work-in-Process Inventory Transferred in from Assembling Department during the period Completed during the period Ending Work-in-Process Inventory (40% complete for conversion work) COSTS Beginning Work-in-Process Inventory (transferred in costs, $98,000; conversion cost, $19,000) Transferred in from the Assembly Department during the period Conversion costs added during the period $ 117,000 694,000 78,920 Print Print Done Done i Requirements 1. Prepare a production cost report for the Testing Department. 2. What is the cost per unit for lifts completed and transferred out to Finished Goods Inventory? Why would management be interested in this cost? Print Print Done

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