Step-by-step solution

Handy Tool Company manufactures a product in two departments. Shaping and Assembly. The product is cut out of sheet metal, bent to shape, and painted in the Shaping Department. Then, it is transferred to the Assembly Department where component parts purchased from outside vendors are added to the unit. A process cost system with a FIFO cost flow assumption is used to account for work in process inventories. Data related to November operations in the Assembly Department follow: Units in beginning inventory (90% materials, 80% labor and 80% overhead) 1,000 Units transferred to Finished Goods Inventory this period 2, 800 Units in ending inventory (50% materials, 40% labor and 40% overhead) 1, 200 Required: Units received from the Shaping Department this period Equivalent Units of Materials Equivalent Units of Labor Equivalent Units of Factory Overhead Cost per equivalent units of Materials Cost per equivalent units of Labor Cost per equivalent units of Factory Overhead Total Cost per equivalent units Cost of units transferred from Assembly Department to Finished Good Inventory Cost of units for ending Work in Process Inventory in Assembly Department