Chapter 20, Problem 6APSA

To determine

1. Determine Number of Units Transferred to Assembly Department.

Concept Introduction:

Process Costing:

Process costing is mainly used in manufacturing units, wherein bulk units of standard goods are produced at a time in lots. It is used for each department of production to determine the costs assigned to units transferred out and ending work in process.

Requirement 1

To Determine Number of Units Transferred to Assembly

No of units transferred to Assembly=187500 Units

Requirement 2

To determine

To Determine:

2. Equivalent Units with respect to Materials and Conversion Using FIFO Method.

Equivalent Units with respect to Materials= 195750 Units

Equivalent Units with respect to Conversion Cost= 182750 Units

Requirement 3

To determine

To Determine:

Direct Material Cost and Conversion Cost per Equivalent Unit.

Direct Material Cost per unit= $2.58 per unit

Conversion Cost per unit=$2.17 per unit

To determine

Concept Introduction:

Process Costing:

Process costing is mainly used in manufacturing units, wherein bulk units of standard goods are produced at a time in lots. It is used for each department of production to determine the costs assigned to units transferred out and ending work in process.

Requirement 4

To Determine:

Assign Cost to Units Transferred out and Ending Work in process.

Total Cost of Units Transferred out= $781451

Total Cost of Ending Work in Process=$101578