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assembly takes place in the CPU Assembly Department. The company recently hired a new accountant who prepared the following report for the department for May,

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assembly takes place in the CPU Assembly Department. The company recently hired a new accountant who prepared the following report for the department for May, using the weighted average method: Quantity Schedule nits to be accounted for work m process, May 1 (materials 90% complete, conversion 80% complete ! Started into production. Total units to be accounted for 5,000 29,000 Units accounted for as follows: 30,000 work in process, May 31 (materials 75% complete, conversion 50% complete) Total units accounted fo 4000 Total Cost Cost to be accounted for: Work in process, May 1 Cost added in the department E 13.400 Cost accounted for as follows: 93.000 Transferred to the next department. Work in process, May 3!..8200 The company's management would like some additional information about May's operation in the CPU Assembly Department. (The currency in England is the pound, which is denoted by the symbol ) Required: 1. How many units were started and completed during May? (4 marks) 2. What were the equivalent units for May for materials and conversion costs? (4 marks) 3. What were the costs per equivalent unit for May? (4 marks) The following additional data are available conceming the departiment's costs: Materials Work in process, May 19,000 Costs added during May 57,000 Conversion E 4.400 30,800 Total E 13,400 87,800 4. Verify the accountant's ending work in process inventory figure (8,200) given in the report. (4 marks) 5. The new manager of the CPU Assembly Department was asked to estimate the incremental cost of processing an additional 1,000 units through the department. He took the unit cost for an equivalent whole unit that you computed in (3) above and multiplied this figure by 1,000. Will this method yield a valid estimate of incremental cost? Explain. (4 marks)

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