Question

Process Costing Part 2 Q(5-7)

Brexit Company assemble a VR-device. Each unit passes through the assembly department and the finishing department. Brexit uses a process costing system for each unit following the weighted-average costing method. In the assembly department, the direct materials are added at the beginning of the assembly process and conversion costs are added evenly during the process. When the assembly department finished, the unit is transferred to the finishing department.

Brexit Company has the following budget for the assembly department.

									Conversion
			Physical Units		Materials		Conversion		Completion Rate
WIP	Beginning of the Week		10		$        1,000		$         2,000		50%
	Units Started		50
WIP	End of the Week		20						60%
Total Cost added during the Week				$        4,700		$        5,800

The finishing department of Brexit Company continues to process the units. Finishing costs are added evenly throughout the finishing process. When the finishing process is complete, the units are transferred to the testing department. Following table shows the flow of works in process in the finishing department for the week.

		WIP		Finishing
	Physical Units	Transferred-In	Finishing	Completion Rate
WIP Beginning of the Week	5	$               1,900	$         2,100	50%
Units Transferred-In	?
WIP End of the Week	15			60%
Total cost added during the Week		$               ?	$         5,700

5) Compute the equivalent units of finishing and WIP transferred-in for the week for the finishing department.

6) Calculate cost per equivalent units for the week for the finishing department. Present the cost per equivalent unit of finishing and WIP transferred-in separately.

7) What are the total costs for units completed and transferred out and total costs for units remaining in the ending works in process for the finishing department?

Required:

Answer 1