The Assembly Department of Zip Surge Protectors 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. Zip 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.

Requirements

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

Inventorylong dashAssembly

T-account. What is the ending balance?

Zip Surge Protectors
Assembly Department
Flow of Physical Units and Computation of Equivalent Units
	Flow of	Equivalent Units
	Physical	Direct	Conversion
Flow of Production	Units	Materials	Costs

Completed and transferred out during September or Ending work process in Septermber 30 or Total Physical units Accounted for or

Requirement 2. Compute the cost per equivalent unit. (For entries with a zero balance, make sure to enter "0" in the appropriate column. Round the cost per equivalent unit to the nearest cent.)

Cost per Equibalent unit

	Direct Materials cost	Conversion costs

equirement 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 preceding step. Round your answers to the nearest whole dollar.)

Zip Surge Protectors
Assembly Department
Assignment of Costs
	Assign costs:	Direct Materials			Conversion Costs				Total
			x (		+		)
			x
							x
	Total cost 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. Explanations are not required.)

Journal Entry
Date		Accounts	Debit	Credit

Requirement 5. Post the transactions to the Work in Process Inventorylong dashAssembly T-account. What is the ending balance? (For entries with a zero balance, make sure to enter "0" in the appropriate column. Leave any unused cells blank.)

Work in Process InventoryAssembly

Bal Sept 1
Bal sept 30