Chapter 20, Problem 16QS

To determine

Concept Introduction:

Costs assigned to Units transferred and units in ending inventory:

The costs are assigned to units transferred and units in ending inventory on the basis of equivalent units in materials and conversion and cost per units assigned.
The costs assigned to units transferred are calculated as under −
  $\begin{array}{l}Costsassignedtounitstransferred=EquivalentunitsofmaterialsXCostperequivalentunits\hfill \\ +EquivalentunitsofconversionXCostperequivalentunits\hfill \end{array}$

The costs assigned to ending inventory are calculated as under −
  $\begin{array}{l}Costsassignedto\text{ ending inventory }=EquivalentunitsofmaterialsXCostperequivalentunits\hfill \\ +EquivalentunitsofconversionXCostperequivalentunits\hfill \end{array}$

To assign:

Costs to the assembly department's output for −

1. Units transferred out to painting department
2. Units in ending inventory (units that remain n process in the assembly department at month-end)