The following information is related to the blending department:

$1,900$ units in beginning WIP, $60\%$ completed as to conversion costs

Direct Materials added: $22,000$ units

Goods completed and transferred total $21,800$ units

All materials are added the beginning of the process.

Beginning WIP was $$7,657$

Cost of DM added during the month: $$77,000$

Cost of DL added during the month: $$14,200$

Factory overhead applied during the month: $$6,880$

Ending WIP inventory is $20\%$ completed as to conversion costs

Required: $($Use Separare Worksheet for items $1-4)$

Compute total units to be assigned costs

Compute Group $1-3$ whole units and equivalent units

Compute cost per equivalent unit for materials and conversion costs

Using cost per equivalent unit above, determine $($A$)$ cost transferred

out of WIP to next department and $($B$)$ cost assigned to ending WIP

Answer the following questions:

Process costing is essentially allocating costs incurred during the period to work performed during

the period. We know costs incurred; how do we determine work performed during the period?

We treat DM and Conversion Costs differently in process costing. What is the assumption as to how

each is consumed during the production process?

The following T$-$account may be helpful in organizing the information: