M-pear Company manufactures M-pear car on an assembly-line basis. The units are started in the Assembly

Department. On 1 January 2021, the Work-in-Process inventory of the Assembly Department consisted of

20,000 units 100% complete as to materials and 35% complete as to conversion. During the month, 55,000

units were started, and 60,000 units were completed and transferred out to Finishing Department. The Workin-Process on 31 January 2021 was 100% complete as to materials and 59% complete as to conversion.

Costs in process at the beginning of the month amounted to $70,000,000 for materials and $43,500,000 for

conversion. Costs added during the month were materials costs of $180,275,000 and conversion costs of

$90,550,950.

N-Apple adopts weighted average method to prepare for the production cost reports.

Required:

(a) Determine the Assembly Departments equivalent units of production for materials and conversion in

January. (2 marks)

(b) Determine the Assembly Departments cost per equivalent unit of production for materials, conversion,

and total in January. (3 marks)

(c) Determine the Assembly Departments cost of ending work in process inventory for materials, conversion,

and in total for January. (3 marks)

(d) Determine the Assembly Departments cost of units transferred out to Finishing Department for materials,

conversion, and in total for January. (3 marks)

(e) John, Manager of the Assembly Department, asked you to prepare for the production report under Firstin-First-out method. He wants you to compare the cost of production between the two methods and

report to the senior management whichever the lower. He thinks that would help him present a better

picture of the performance of the department under his management. How would you respond to his

request?