Straightforward process costing: Ming company produces digital watches in large quantities. For simplicity, assume that the company has two departments, assembly and testing. The manufacturing costs in the assembly department during January were:

Straightforward process costing: Ming company produces digital watches in large quantities. For simplicity, assume that the company has two departments, assembly and testing. The manufacturing costs in the assembly department during January were:

Direct Materials added $72,000

Conversion Costs 76,000

Assembly costs to account for $148,000

There was no beginning inventory of work in process. Suppose work on 10,000 watches was begun in the assembly department during January, but only 9,000 watchess were fully completed. All the parts had been made for placed in process, but only half the labor had been completed for each of the watches.

Required:

1. Compute the equivalent units and equivalent unit costs for January.
2. Compute the costs of units completed and transferred to the testing department. Also compute the cost of the ending work in process.

P	[Physical Units]
	Primary		Secondary (transferred to)
	WIP - (units) _______________		WIP - (costs) _______________		Finishing
E	[Equivalent Units]
			DM		CC
C	[Costs]
U	[Unit Costs]
A	[Assignment of Costs]
			DM		CC
	FG (trans out)
	WIP