Gena Company has several processing departments. Costs charged to Department A for January 2020 were as follows.

Work in process, January 1: Materials =$37,000 Conversion costs =$18,000

Costs added during the month:

Materials $1,462,600

Labor $392,000

Overhead $127,240

Production records show that 25,000 units were in beginning work in process 40% complete as to conversion cost, 435,000 units were started into production, and 40,000 units were in ending work in process, 100% complete as to materials, and 60% complete as to conversion costs.

Instructions:

• Determine the physical and equivalent units of production
• Determine the cost per equivalent unit for Department A
• Determine the assignment of costs to goods transferred out and in ending work in process
• Do an analysis of total costs
• Prepare the journal entry necessary to transfer the cost of the completed units from Department A to Department B.