Question on Manufacturing

On 1 September 2022, Appliances Ltd had 1,600 units of work-in-process in the Assembly Department, the final state of their production process, which were 80% complete with respect to materials and 40% complete for conversion.

The costs attached to these 1,600 units were as follows:

Transferred-in from the Machining Department: $560,100

Material costs added in the Assembly Department: $57,600

Conversion costs added in the Assembly Department: $70,405

During September, the following occurred:

Transferred-in from the Machining Department: 8,800 units at a cost of $3,298,300

Material costs added in the Assembly Department: $417,120

Conversion costs added in the Assembly Department: $905,570

On 30 September 2022, the Assembly Department has 1,700 units of work-in-process, which are 70% complete with respect to materials and 35% complete for conversion.

Required:

Complete the first two steps in preparing a process cost report for the Assembly Department.

Use the template provided below:

(a) Step 1: Physical Flow Schedule for the Assembly Department in September 2022

Units to account for		Units accounted for
Beginning work-in-process		Completed and transferred out
Units transferred-in		Ending work-in-process
Total units to account for		Total units accounted for

(b) Step 2: Calculation of Equivalent Units for the Assembly Department in September 2022

	Transferred-in	Materials	Conversion
Units completed	8,700
Ending work-in-process	1,700
Equivalent units	10,400