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Weather Instruments assembles products from component parts. It has two departments that process all products. During January the beginning work-in-process in the assembly department was

Weather Instruments assembles products from component parts. It has two departments that process all products. During January the beginning work-in-process in the assembly department was half completed as to conversion and complete as to direct materials. The beginning inventory included $12,000 for materials and $4,000 for conversion costs. Overhead is applied at the rate of 50 percent of direct manufacturing labour costs. Ending work-in-process inventory in the assembly department was 40 percent complete. All spoilage is considered normal and is detected at the end of the process. Additional information about the two departments follows:

Assembly Finishing

Beginning work-in-process units 20,000 24,000

Units started this period 40,000 ?

Units transferred this period 50,000 54,000

Ending work-in-process units 8,000 20,000

Material costs added $44,000 $28,000

Direct manufacturing labour $16,000 $24,000

Required:

Calculate the following for the assembly department assuming that spoilage is recognized, and the weighted-average method is used.

a) Equivalent units of production.

b) Cost per Equivalent unit of production.

c) Cost of Ending Inventory.

d) Cost of units transferred out.

e) Cost of Abnormal Spoilage.

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