XYZ Company assembles a standard electrical component from parts it purchases from various suppliers. The

production process consists of several steps, starting with assembly, which takes place in the Assembly

Department. The company recently hired a new accountant, who prepared the following report for the

department for May, using the weighted$-$average method:

Quantity Schedule

Units to be accounted for:

Work in process, May $1($materials $90\%$ complete; conversion $80\%$ complete$)$

Started into production

Total units

Units accounted for as follows:

Transferred to next department

Work in process, May $31($materials $75\%$ complete; conversion $50\%$ complete$)$

Total units

Cost Reconciliation

Cost to be accounted for:

Work in process, May $1$

$$13,400$

Cost added in the department

Total cost to be accounted for

Cost accounted for as follows:

Work in process, May $31$

$$12,450$

Transferred to next department

$88,{750}_{?}$

Total cost accounted for

$$101,200$

The company's management would like some additional information about May's operation in the Assembly

Department.

Required:

How many units were started and completed during May?

What were the equivalent units for May for materials and conversion costs?

What were the costs per equivalent unit for May? The following additional data are available concerning

the department's costs:

Work in process, May $1$

Costs added during May

Calculate the material cost and the conversion cost of the ending work in process.

The new manager of the Assembly Department is asked to estimate the incremental cost of processing an

additional $1,000$ units through the department. He takes the unit cost for an equivalent whole unit that

you computed in $(3)$ above and multiplies this figure by $1,000.$ Will this method yield a valid estimate of

incremental cost?XYZ Company assembles a standard electrical component from parts it purchases from various suppliers. The

production process consists of several steps, starting with assembly, which takes place in the Assembly

Department. The company recently hired a new accountant, who prepared the following report for the

department for May, using the weighted$-$average method:

Quantity Schedule

Units to be accounted for:

Work in process, May $1($materials $90\%$ complete; conversion $80\%$ complete$)8,000$

Started into production $26,000$

Total units $34,000$

Units accounted for as follows:

Transferred to next department $28,000$

Work in process, May $31($materials $75\%$ complete; conversion $50\%$ complete$)6,000$

Total units $34,000$

Cost Reconciliation

Cost to be accounted for:

Work in process, May $1$ $ $13,400$

Cost added in the department $87,800$

Total cost to be accounted for $ $101,200$

Cost accounted for as follows:

Work in process, May $31$ $ $12,450$

Transferred to next department $88,750$

Total cost accounted for $ $101,200$

The company$$s management would like some additional information about May$$s operation in the Assembly

Department.

Required:

$1.$ How many units were started and completed during May?

$2.$ What were the equivalent units for May for materials and conversion costs?

$3.$ What were the costs per equivalent unit for May? The following additional data are available concerning

the department$$s costs:

Materials Conversion Total

Work in process, May $1$ $ $9,000$ $ $4,400$ $ $13,400$

Costs added during May $ $56,000$ $ $31,250$ $ $87,250$

$4.$ Calculate the material cost and the conversion cost of the ending work in process.

$5.$ The new manager of the Assembly Department is asked to estimate the incremental cost of processing an

additional $1,000$ units through the department. He takes the unit cost for an equivalent whole unit that

you computed in $(3)$ above and multiplies this figure by $1,000.$ Will this method yield a valid estimate of

incremental cost?