OceanBound uses three processes to manufacture lifts for personal watercraft: forming a lift's parts from galvanized steel, assembling the lift, and testing the completed lift. (Click the icon to view additional information.) Requirement 1. Prepare a production cost report for the Testing Department (Round all cost per unit amounts to the neare OceanBound Production Cost Report-Testing Department Month Ended August 31 Equivalent Units Physical Transferred Direct Conversion UNITS Units Costs In Materials Units to account for: Total units to account for Units accounted for: n/a n/a n/a Total units accounted for Transferred Direct Conversion Total aasaalala Transferred Conversion COSTS Direct Materials Total In Costs to account for: Costs Costs nie na Total costs to account for na nia Cost per equivalent unit Costs accounted for n/a nila Total costs accounted for nia Requirement 2. What is the cost per unit for its completed and transferred out to Finished Goods Inventory? Why would management be interested in this cost? The cost per unit for its completed and transferred out to Finished Goods Inventory is port Why would management be interested in the cost per unit for its completed and transferred out to Finished Goods Inventory? A Managers use the cost per litt for external financial reporting-specifically to calculate the cost of Goods Sold on the Income Statement OB. Managers use the cost per ift for external financial reporting specifically to calculate the ending inventory balances on the Balance Sheet Choose from any list or enter any number in the input fields and then continue to the next question port Requirement 2. What is the cost per unit for its completed and transterred out to Finished Goods Inventory? Why would management be interested in this cost? The cost per unit for its completed and transferred out to Finished Goods Inventory is Why would management be interested in the cost per unit for its completed and transferred out to Finished Goods Inventory? A Managers use the cont per it for external financial reporting-specifically to calculate the cast of Goods Sold on the Income Statement. OB Managern use the cont per litt for external financial reporting specifically to calculate the ending inventory balances on the Balance Sheet OC Managers would compare the average couper lint against the budgeted costs to determine whether the costs of the Testing Department remain under control. If budgeted managers have done a good job controling costs. In contrast, if the budgeted costs are lower than the actual average cost per in, managers will investigate the reason for th OD. All of the above are reasons why management would be interested in this cout per unit for its completed and transferred out to Finished Goods inventory over costs d on the income Statement balances on the Balance Sheet ests of the Testing Department remain under control. If budgeted costs are higher than the actual average cost per lift, then the al average cost per lift, managers will investigate the reason for the higher-than-expected costs in an effort to regain control nd transferred out to Finished Goods Inventory 0 More Info The lifts are transferred to Finished Goods Inventory before shipment to marinas across the country. OceanBound's Testing Department requires no direct materials. Conversion costs are incurred evenly throughout the testing process. Other information follows for the month of August: 2,400 units 7.500 units 4,500 units 5,400 units UNITS Beginning Work-in-Process Inventory Transferred in from Assembling Department during the period Completed during the period Ending Work-in-Process Inventory (40% complete for conversion work) COSTS Beginning Work-in-Process Inventory (transferred in costs, $88,000; conversion cost, $19,000) Transferred in from the Assembly Department during the period Conversion costs added during the period 107.000 783,200 74,240 Print Done Requirements X 1. Prepare a production cost report for the Testing Department. 2. What is the cost per unit for lifts completed and transferred out to Finished Goods Inventory? Why would management be interested in this cost? Print Done