Toyota Motor Corporation uses process costing for its assembly line. During May 2024, the assembly department incurs costs of 10 million and produces 20,000 units. Units were 80% complete for materials and 60% complete for conversion costs at the beginning of the month. By the end of the month, 18,000 units were completed, and 2,000 units were 50% complete for materials and 30% complete for conversion costs.

Required:

• Calculate the equivalent units of production for materials and conversion costs.
• Determine the cost per equivalent unit for materials and conversion costs.
• Allocate costs to completed units and units in ending work in process inventory using the weighted average method.
• Prepare a cost of production report for the assembly department.
• Analyze the cost per unit differences between completed units and units in ending work in process inventory.