Question 1: Process Costing System

Consider the following data for the assembly department of Kumal's Carpet Limited. The Carpets are assembled in Assembly Department and then transferred to Packaging Department.

Required:

1. Determine the cost per equivalent unit for the Assembly Departments direct materials and conversion costs, and the total unit cost for the current period, under the:

a) Weighted-Average method

b) FIFO method

2. Assign total costs to units completed (and transferred out) to Packaging Department and to units in ending work in process in the Assembly Department.

\begin{tabular}{|l|c|l|c|} \hline & Physical Units (Carpets) & Direct Materials & Conversion Costs \\ \hline Beginning work in process (November 1) & 80 & $493,360 & $91,040 \\ \hline Started in November 2022 & 500 & & \\ \hline Completed during November 2022 & 460 & & \\ \hline Ending work in process (November 30) & 120 & & \\ \hline Total cost added during November 2022 & & $3,220,000 & $1,392,000 \\ \hline i Degree of Completion: Direct Materials 90% \& Conversion Costs 40\% \\ \hline \multicolumn{2}{|l|}{ ii Degree of Completion: Direct Materials 60% \& Conversion Costs 30\% } \\ \hline \end{tabular}