More info The lifts are transferred to Finished Goods Inventory before shipment to marinas across the country. AquaMate's Testing Department requires no direct materials. Conversion costs are incurred evenly throughout the testing process. Other information follows for the month of August: AquaMsie uses three processes to manulacture ifs for persional wolererat forming a lits parts from galvanized steel, assembling the ift, and testing the compleled lif. click the icon to view additiona information.) The cost transfered into Finished Goods inventory is the eost of the tifs transferred out of the Tetting Department. AquaMate uses the weighted-average method Read the requinments Requirement 1. Prepare a production cost report for the Testing Depariment (Round al cost per unit amounts to the neacest cant and all other amounts io the nearest whole dollar Abberevaten unod: EUP = equivalent units of production. Mequarement 2. What k the cest por unh for ins completed and vansfered out to Frished Coods incentory? Why wouid mahagement be interesied in this coet? The cost per uni for bfs concleted and trampered out io Finished Goods Frveniony is per ie Why would management be irterented in the cost per init for its completed and translerred out to Finished Goods imventon? A. Managers wouls compare the average cost per it oganst theic busgeled costs io desermine whether the costs of the Testrg Deparment remain under control if budgeted cosis are higher will investigate the reason for the highed than expected costs in an effort to regain control over costs. 1. Manogers use the east per ia for ovlemal finarcial reporting-specifcally to calculste the cost of Goods Sold on the income saatentent. Aquakate uses trree processes to manulacture its for personal watepcraft: forning a lifts parts from gaivanited steel. assernbling the lit, and testing the completed lit. The cost transferred into Finished Goods inventory is the cost of the hits transferred out of the Testing Department. AquaMate uses the weiphtod-average method More info The ins are translemed io Finithed Goods irventory before shipment so marinas across the country. AquaMate's Testing Depwiment recuies no direct materisls. Corvorsich costs afe Production Cost Ranart-Taetinn nanartmant Total units to account for Units accounted for: Total units accounted for \begin{tabular}{cccc} Transferred & Direct & Conversion & Total \\ In & Materials & Costs & Costs \\ \hline \end{tabular} Costs to account for Total costs to account for Cost per equivalent unit Costs accounted for: Requirement 2. What is the cost per ieil for its completed and transferred out to Finished Gicods mventory? Why would managemont be interested in this cost? The cost cor und for ifis eancieted and transterred out to Finished Ooods invertary is per an A. Uanaper woild compare the average cott per if apsinst their budpeted costs to detectine whether the costs of the Tesing Department remain under contral if budgeled costs are higher 11. Manaopin use the cos per in for exiemal francial reporing nipectcaly lo caculate the Cost of Oopes sold on the income 5 tatemom b. N of the whove we matons why management wouid pe ideresed in this cont per und for its coergleted and banstered out is Finished Gooda imentory
