Process Cost Practice Quiz- Part 1 The following information is related to the blending department: 1. 1,900 units in beginning WIP, 60% completed as to conversion costs 2. Direct Materials added: 22,000 units 3. Goods completed and transferred total 21,800 units 4. All materials are added at the beginning of the process. 5. Beginning WIP was $7,657 6. Cost of DM added during the month: $77,000 7. Cost of DL added during the month: $14,200 8. Factory overhead applied during the month: $6,880 9. Ending WIP inventory is 20% completed as to conversion costs Required: (Use Separare Worksheet for items 1-4) 1. Compute total units to be assigned costs 2. Compute Group 1-3 whole units and equivalent units 3. Compute cost per equivalent unit for materials and conversion costs 4. Using cost per equivalent unit above, determine (A) cost transferred out of WIP to next department and (B) cost assigned to ending WIP 5. Answer the following questions: 1. Process costing is essentially allocating costs incurred during the period to work performed during the period. We know costs incurred; how do we determine work performed during the period? 2. We treat DM and Conversion Costs differently in process costing. What is the assumption as to how each is consumed during the production process? The following T-account may be helpful in organizing the information: