Audio Accessories Ltd manufactures a model of compact disc holders which is produced in three separate departments: Molding, Assembly, and Finishing. It uses the weighted-average process-costing method to account for the cost of production. The following information was obtained for the Assembly Department for the month of April. Amount Percentage complete WIP, 1 April (5,000 units) Prior department costs transferred in from the Molding Department $7,000 100% Costs added by the Assembly Department Direct materials $3,500 100%

Direct labour 4,500 60% Manufacturing overhead 2,000 50% 10,000 Total WIP, 1 April $17,000 During the month of April, the Molding Department transferred into the Assembly Department 25,000 units at a prior department cost of $38,000. The Assembly Department added the following $51,700 of costs: Direct materials $19,700 Direct labour 22,500 Manufacturing overhead 9,500 $51,700 The Assembly Department completed and transferred out 20,000 units to the Finishing Department. The balance was still in WIP in the Assembly Department. The degree of completion of WIP at 30 April was as follows: Direct materials 90% Direct labour 70% Manufacturing overhead 30% Required: (a) Prepare a report to show the physical flow of units, the equivalent units, unit costs of transferred in cost, direct materials, direct labour and manufacturing overheads. (b) Prepare a report to show the cost of goods completed and the cost of ending work in process for the month. Explain why process costing system is best suited to Audio Accessories Ltd?