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

The cost transferred into Finished Goods Inventory is the cost of the lifts transferred out of the Testing Department. WaterWork uses the weighted-average method.

Requirements

1. Prepare a production cost report for the Testing Department.
2. What is the cost per unit for lifts completed and transferred out to Finished Goods Inventory? Why would management be interested in this cost?

WaterWork uses three processes to manufacture lifts for personal watercraft forming a lift's parts from galvanized steel, assembling the lift, and testing the completed lift (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. WaterWork uses the weighted-average method. Read the requirements 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.) WaterWork Production Cost Report-Testing Department Month Ended August 31 Equivalent Units Physical Transferred Direct Conversion