Jerry and Peter Company began operations on June 1^st by starting 60,000 units of product in process in the Assembly Department. Total costs incurred during June were $459,000 of direct materials and $252,000 of conversion costs. At June 30^th, 15,000 units remained in work in process, 60% complete as to direct materials and 20% complete as to conversion costs.

Use the five steps of process costing to identify the missing amounts in the following production cost reports.

Step 1: Summarize the flow of production in physical units.

Step 2: Compute output in terms of equivalent units.

Step 3: Summarize total costs to account for.

Step 4: Compute the cost per equivalent unit.

Step 5: Assign costs to units completed and to units in ending work in process inventory.

	Assembly Department
	Month Ended June 30th, 20XX
			Step 2
		Step 1	Equivalent Units
	Flow of Production	Flow of Physical Units	Direct Materials	Conversion Costs
Units to account for:
	Beginning work in process, June 1st	60,000
	Started in production during June	15,000
	Total physical units to account for	75,000
Units accounted for:
	Completed and transferred out in June	60,000		48000
	Ending work in process, June 30th	15,000	6000	3000
	Total physical units accounted for		XXX	XXX
Equivalent units

1.60,000x1-

Steps 3 and 4

	Assembly Department
	Month Ended June 30th, 20XX
		Direct Materials	Conversion Costs	Total
Beginning work in process, June 1st
Costs added during June
Total cost to account for
Divide by equivalent units
Cost per equivalent unit

Step 5

Assembly Department
Month Ended June 30th, 20XX
	Direct Materials	Conversion Costs	Total
Units completed and transferred out
Units in ending work in process inventory
Direct materials
Conversion costs
Total cost of ending work in process inventory
Total cost accounted for