Question
The Assembly Department of ZAP Motors began September with no work in process inventory. During the month, production that cost $50,786 (direct materials, $12,386, and
The Assembly Department of ZAP Motors began September with no work in process inventory. During the month, production that cost $50,786 (direct materials, $12,386, and conversion costs, $38,400) was started on 27,000 units. ZAP completed and transferred to the Testing Department a total of 20,000 units. The ending work in process inventory was 36% complete as to direct materials and 80% complete as to conversion work.
| 1. | Compute the equivalent units for direct materials and conversion costs. |
| 2. | Compute the cost per equivalent unit. |
| 3. | Assign the costs to units completed and transferred out and ending work in process inventory. |
| 4. | Record the journal entry for the costs transferred out of the Assembly Department to the Testing Department. |
| 5. | Post all of the transactions in the "Work in Process InventoryAssembly" T-account. What is the ending balance? |
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