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Exercise 3 Global Defense manufactures its product in two departments, Assembly and Testing. The following information is available for the month of March. Assembly Department The beginning work in process inventory consisted of 225 units with a total cost of $26,100 ($18,000 direct materials and $8,100 conversion costs). The beginning work in process inventory was 80% complete as to conversion costs. During March, an additional 275 units were started into production. 400 units were completed and transferred out to the Testing Department during March. The ending work in process inventory consisted of 100 units that were 50% complete as to conversion costs. Materials are added at the beginning of the process in the Assembly Department. During March, the following costs were incurred: direct materials $19,800, direct labor $10,000, and factory overhead $6,380. Testing Department The beginning work-in-process inventory consisted of 240 units with a total cost of $51,600 ($33,600 transferred-in cost and $18,000 conversion costs). The beginning work in process inventory was 25% complete as to conversion costs. A total of 440 units were completed and transferred out to finished goods during March. The ending work in process inventory consisted of 200 units which were 80% complete as to conversion costs. Materials are added at the end of the process in the Testing Department. During March, the following costs were incurred: direct materials $13,200, direct labor $28,600, and factory overhead $20,000. Instructions A. Prepare a production report for the Assembly Departments for March. B. Give the general journal entry required to transfer the units from the Assembly Department to the Testing Department. General Journal Account Titles Dr Cr C. Prepare a production report for the Testing Department for March. D. Give the general journal entry required to transfer the units from the Testing Department to finished goods. General Journal Account Titles Dr Cr E. Enter the appropriate cost amounts into Work in Process T-accounts for both departments. Work in Process- Work in Process- Assembly Dept. Testing Dept. I. GLOBAL DEFENSE PRODUCTION REPORT-ASSEMBLY DEPT MARCH SCHEDULE OF EQUIVALENT UNITS Beg WIP Units Started Total Units to Account For DM CC Units Completed End WIP Total Units Accounted For Equivalent Units of Production II. COMPUTATION OF PER UNIT COSTS BEG WIP CURRENT COSTS TOTAL COSTS EQUIV. UNITS UNIT COST + DM CC Totals III. ASSIGNMENT OF COSTS TO PRODUCTION Cost of Goods Manufactured: Ending Work in Process: DM CC Total Ending Work in Process Total Cost Assigned I. GLOBAL DEFENSE PRODUCTION REPORT-TESTING DEPT MARCH SCHEDULE OF EQUIVALENT UNITS Beg WIP Units Transferred-In Total Units to Account For T-IN CC DM Units Completed End WIP Total Units Accounted For Equivalent Units of Production II. COMPUTATION OF PER UNIT COSTS BEG WIP CURRENT COSTS TOTAL COSTS EQUIV. UNITS UNIT COST / T-IN CC DM Totals ASSIGNMENT OF COSTS TO PRODUCTION Cost of Goods Manufactured: Ending Work in Process: T-IN DM Total Ending Work in Process Total Cost Assigned