Washington, Inc., makes three models of motorized carts for vacation resorts, X-10, X-20, and X-40. Washington manufactures the carts in two assembly departments: Department A and Department B. All three models are processed initially in Department A, where all material is assembled. The X-10 model is then transferred to finished goods. After processing in Department A, the X-20 and X-40 models are transferred to Department B for final assembly, and then transferred to finished goods. There were no beginning work-in-process inventories on April 1. Data for April are shown in the following table. Ending work in process is 20 percent complete in Department A and 60 percent complete in Department B. Conversion costs are allocated based on the number of equivalent units processed in each department. Total X-10 X-20 X-40 Units started 510 390 270 Units completed in Department A 440 250 180 Units completed in Department B 225 160 Materials $ 387,000 $ 51,000 $ 126,750 $ 209,250 Conversion costs: Department A $ 302,250 Department B 41,200 Total conversion costs $ 343,450 Required: a. What is the unit cost of each model transferred to finished goods in April? b. What is the balance of work-in-process inventory on April 30 for Department A? Department B?
Washington, Inc., makes three models of motorized carts for vacation resorts, X-10, X-20, and X-40. Washington manufactures the carts in two assembly departments: Department A and Department B. All three models are processed initially in Department A, where all material is assembled. The X-10 model is then transferred to finished goods. After processing in Department A, the X-20 and X-40 models are transferred to Department B for final assembly, and then transferred to finished goods.
There were no beginning work-in-process inventories on April 1. Data for April are shown in the following table. Ending work in process is 20 percent complete in Department A and 60 percent complete in Department B. Conversion costs are allocated based on the number of equivalent units processed in each department.
| Total | X-10 | X-20 | X-40 | |||||||||
| Units started | 510 | 390 | 270 | |||||||||
| Units completed in Department A | 440 | 250 | 180 | |||||||||
| Units completed in Department B | 225 | 160 | ||||||||||
| Materials | $ | 387,000 | $ | 51,000 | $ | 126,750 | $ | 209,250 | ||||
| Conversion costs: | ||||||||||||
| Department A | $ | 302,250 | ||||||||||
| Department B | 41,200 | |||||||||||
| Total conversion costs | $ | 343,450 | ||||||||||
Required:
a. What is the unit cost of each model transferred to finished goods in April?
b. What is the balance of work-in-process inventory on April 30 for Department A? Department B?
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