Problem 2 (13 points)

The following are the production Information for Desk Products' Assembly Department for the month of May:

The company had 3,000 units in beginning WIP inventory which were 65% complete with respect to materials cost and 50% complete with respect to conversion costs.

During May, 4,000 units were started for production.

At the end of the year 2,000 units were completed and transferred out to the Finishing department (100 percent complete with respect to direct materials costs and conversion cost)

5,000 units were partially completed and remained in ending WIP inventory on May 31 (60 percent complete with respect to direct materials costs, and 30 percent complete with respect to conversion costs).

Costs in beginning WIP inventory were $95,000 in direct materials, $40,000 in direct labor and $26,000 in manufacturing overhead cost.

Costs incurred during May totaled were $115,000 in direct materials, $70,000 in direct labor and $40,000 in manufacturing overhead cost.

The company use Weighted Average method

Required:

1. Determine the equivalent units for the Assembly department.

2. Determine the total cost of ending work in process inventory, and the total cost of units transferred to the Finishing department.