Computing equivalent units
and assigning costs to completed units and ending work in process; no
beginning inventory or cost transferred in [ 30-45 min]
Electronics makes CD players in three processes: assembly, programming,
and packaging. Direct materials are added at the beginning of the
assembly process. Conversion costs are incurred evenly throughout the
process. The Assembly Department had no work in process on March 31. In
mid- April, Sue Electronics started production on 100,000 CD players. Of
this number 76,1-- CD players were assembled during April and
transferred out of the Programming Dept. The A[ril 30 work in process in
the Assembly Dept. was 40% of the way through the assembly process.
Direct materials costing $375,720 were placed in production in Assembly
during April, and direct labor of $157,700 and manufacturing overhead of
$98,505 were assigned to that department.
1. Draw a time line for the Assembly Department.
Use the time line to help you compute the number of equivalent units
and the cost per equivalent unit in the Assembly Department for April.
Assign total costs in the Assembly Dept. to (a) units completed and
transferred to Programming during April and (b) units still in process
at April 30.4. Prepare a T-account for Work in Process Inventory-
Assembly to show its activity during April, including the April 30