Equivalent Units of Production. Klein Products had $300$ units in beginning WIP inventory.

During the period $600$ units were started into production, and $400$ were completed and

transferred out. $500$ units were partially completed in Ending Work In Process. These $500$ units

were $90\%$ complete for Assembly and $70\%$ complete for Packaging. Cost of beginning WIP

inventory were $$4,000$ for Assembly and $$8,000$ for Packaging. Costs incurred during the period

were $$9,000$ for Assembly and $$7,000$ for Packaging.

Homework Problem #$5$: Should the company make or buy the parts? Prepare a Make$/$Buy

differential analysis to show if the company should continue to make in$-$house or buy from the

outside supplier.