WaterWorthy 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.

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The cost transferred into Finished Goods Inventory is the cost of the lifts transferred out of the Testing Department. uses weighted$-$average process costing.

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WaterWorthy 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. WaterWc uses weighted$-$average process costing

Read the requirements.

Requirements

UNITS

$\backslash$table$[[$Units$],[2,300],[6,600],[8,900]]$

Units accounted for:

Units to account for:

$\backslash$table$[[$Beginning work$-$in$-$process,$2,300],[$Transferred in$,6,600],[$Total units to account for,$8,900]]$

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The lifts are transferred to Finished Goods Inventory before shipment to marinas acr$$ss the country WaterWorthy's Testing Department requires no direct materials. Conversion costs are incurred evenly throughout the testing process. Other information follows for the month of August

UNITS

Beginning Work$-$in$-$Process Inventory

Transferred in from Assembling Department during the period

Completed during the period

Ending Work$-$in$-$Process Inventory $(40\%$ complete for conversion work$)$

COSTS

Beginning Work$-$in$-$Process Inventory $($transferred in costs, $$89,000$; conversion cost, $$13,000)$

Transferred in from the Assembly Department during the period

$

Conversion costs added during the period

$102,000$

$703,100$

$81,400$

$2.$ What is the cost per unit for lifts completed and transferred out to Finished Goods Inventory? Why would management be interested in this cost?

Conversioncosts added during the period