uses three processes to manufacture lifts for personal watercraft: forming a lift's parts from galvanizedsteel, assembling the lift, and testing the completed lift.

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(Click the icon to view additional information.)The cost transferred into Finished Goods Inventory is the cost of the lifts transferred out of the Testing Department.

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uses weighted-average process costing.Read the requirements

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Requirement 1. Prepare a production cost report for the Testing Department. (Round all cost per unit amounts to the nearest cent and all other amounts to the nearest whole dollar. Abbreviation used: EUP = equivalent units of production.)

WaterWorthy
Production Cost Report-Testing Department
Month Ended August 31
		Equivalent Units
	Physical	Transferred	Direct	Conversion
UNITS	Units	In	Materials	Costs
Units to account for:
Beginning work-in-process	1,700
Transferred in	7,400
Total units to account for	9,100
Units accounted for:
Completed and transferred out	4,300	4,300	n/a	4,300
Ending work-in-process	4,800	4,800	n/a	1,920
Total units accounted for	9,100	9,100	n/a	6,220

		Transferred	Direct	Conversion	Total
COSTS		In	Materials	Costs	Costs
Costs to account for:
Beginning work-in-process		$96,000	n/a	$13,000	$109,000
Costs added during the period		641,100	n/a	80,300	721,400
Total costs to account for		$737,100	n/a	$93,300	$830,400
Divided by: Total EUP		9,100	n/a	6,220
Cost per equivalent unit		$81.00	n/a	$15.00

Costs accounted for:
Completed and transferred out	348,300	n/a
Ending work-in-process	388,800	n/a
Total costs accounted for	737,100	n/a

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