Samantha's Winter Shop sells high quality snowboards that is distributed to all the retailers in the region. The process in making a snowboard first starts off in the cutting department where it gets perfectly shaped and then the finishing department where it's sanded and painted in bright colours. Once they are done in the finishing department, they are ready for sale.

The following information relates to the finishing process in January.

 

	Units	Transferred-In	DM	Conversion Costs
Units in beginning WIP Inventory	400
Beginning WIP Inventory degree of completion		100%	0%	30%
Costs in beginning WIP Inventory		$750	0%	$787
New Units Started	9600
Costs added to WIP Inventory this period		$18,000	$3,500	$10,550
Units Completed	9200
Units in ending WIP Inventory	800
Ending WIP Inventory degree of completion		100%	0%	30%

Samantha uses the FIFO method of process costing.

Required:

1) Determine equivalent units for transferred-in costs, DM, and Conversion costs for the finishing department in January by completing steps 1 and 2 of the template

2) Determine Samantha's cost per equivalent unit for all cost categories and assign costs to units completed and to units in ending WIP Inventory-Finishing by completing Steps 3-5 of the template.

3) Do you think this method accurately reflects how the work in the finishing department is done? Explain your reasoning.