JOB-ORDER COSTING AND PROCESS COSTING SYSTEMS 14.B2 Basic Process Costing Hassan Company produces digital watches in large quantities. The manufacturing costs of the assem- bly department were as follows: Direct materials added Conversion costs $1,750,000 Direct labor $550,000 37.500 Factory overhead 687.500 Assembly costs to account for $2,437,500 For simplicity, assume that this is a two-department company, assembly and finishing. There was no beginning work in process. Suppose 700,000 units were started in the assembly department. There were 400,000 units com- pleted and transferred to the finishing department. The 300,000 units in ending work in process were fully completed regarding direct materials but half-completed regarding conversion costs. 1. Compute the equivalent units and unit costs in the assembly department. 2. Compute the costs of units completed and transferred to the finishing department. Also compute the cost of the ending work in process in the assembly department. (For journal entries, see Exercise 14-35.) 14-B3 Weighted-Average Process-Costing Method The Rainbow Paint Company uses a process-costing system. Materials are added at the beginning of a particular process, and conversion costs are incurred uniformly. Work in process at the beginning of the month is 40% complete, while at the end it is 20% complete. One gallon of material makes one gallon of product. Data follow: Beginning inventory Direct materials added Ending inventory Conversion costs incurred Cost of direct materials added Conversion costs, beginning inventory Cost of direct materials, beginning inventory 600 gal 8,200 gal ,000 gal $25,800 $55,700 $ 2,200 $ 3,700 Use the weighted-average method. Prepare a schedule of output in equivalent units and a schedule of application of costs to products. Show the cost of goods completed and cost of ending work in process. (For joumal entries, see Exercise 14-37.) 14-B4 Backflush Costing Audio Components recently installed a backflush-costing system. One department makes 4-inch speakers with a standard cost as follows: $9.60 5.40 $15.00 Materials Conversion costs Speakers are scheduled for production only after orders are received, and products are shipped to customers immediately on completion. Therefore, no finished goods inventories are kept, and product costs are applied directly to cost of goods sold In October, 1.600 speakers were produced and shipped to customers. Materials were purchased at cost of $16,200, and actual conversion costs (labor plus manufacturing overhead) of $6,800 were recorded. 1. Prepare journal entries to record October's costs for the production of 4-inch speakers. 2. Suppose October's actual conversion costs had been $6,000 instead of $6,800. Prepare a journal entry to recognize overapplied conversion