Syed & Zhang Customized Manufacturing Ltd. produces several different alternators for over 10 different auto manufacturers that currently have manufacturing operations located in Southwestern Ontario. Each one of these customers have very different specifications.

Syed & Zhang also has several departments. The first is the moulding department, followed by the customization department and then finally the finishing department. In the first department that being the moulding department they created a very specific template for the alternators.This component is called an Altitude Alternator which is the starting point for all the different types of alternators that are manufactured at Syed & Zhang.The following relates to the production of these alternators during the month of Julyin the moulding department:

Please keep in mind that their previous controller recommended they use process costing. Base your calculations on the assumption that Syed & Zhang continue to use process costing for allocating and tracking costs.

Work-in-process inventory, July 13,500alternatorsDirect materials: 100% complete$10,180Conversion: 40% complete$14,958Units started during July17,700alternatorsUnits completed during July and transferred out16,700alternatorsWork-in-process inventory, July 31Direct materials: 100% completeConversion: 20% completeCosts incurred during JulyDirect materials$58,740Conversion$91,792