The Assembly Department of Thomas Motors began September with no work in process inventory. During themonth, production that cost $35,282 (direct materials, $8,242, and conversion costs, $27,040) was started on 23,000 units. Thomas completed and transferred to the Testing Department a total of 12,000 units. The ending work in process inventory was 35%

complete as to direct materials and 80% complete as to conversion work.

Requirement 1. Compute the equivalent units for direct materials and conversion costs.

Assembly Department
Equivalent Unit Computation
Month Ended September 30
	Flow of	Equivalent Units
	Physical	Direct	Conversion
Flow of Production	Units	Materials	Costs
Units accounted for:
Completed and transferred out	12,000	12,000	12,000
Plus: Ending work in process, September 30
Total physical units accounted for
Total equivalent units

Requirement 2. Compute the cost per equivalent unit. (For entries with a $0 balance, make sure to enter "0" in the appropriate column. Enter the cost per equivalent unit to two decimal places.)

Assembly Department
Cost per Equivalent Unit
Month Ended September 30
	Direct	Conversion
	Materials	Costs
Cost per equivalent unit

Requirement 3. Assign the costs to units completed and transferred out and ending work in process inventory. (Enter quantities first, then the cost per equivalent unit amounts in the same order as calculated in the precedingstep.)

Assembly Department
Month Ended September 30
Assigning Costs
		Direct	Conversion
		Materials	Costs	Total
	Completed and transferred out:
	Ending work in process:
	Total costs accounted for

Requirement 4. Record the journal entry for the costs transferred out of the Assembly Department to the Testing Department. (Record debits first, then credits. Exclude explanations from any journal entries.)

Journal Entry
Date		Accounts	Debit	Credit

Requirement 5. Post all of the transactions in the "Work in Process InventoryAssembly" T-account. What is the ending balance? (For entries with a $0 balance, make sure to enter "0" in the appropriate column.)

Work in Process InventoryAssembly