Chapter 5, Problem 5.36AE

Complete five-step procedure in second department (Learning Objective 5)

Alpha Semiconductors experienced the following activity in its Photolithography Department during December. Materials are added at the beginning of the photolithography process.

Units:
Work in process, December 1 (80% of the way through the process)	6,000 units
Transferred in from the Polishing and Cutting Department during December	29,000 units
Completed during December	? units
Work in process, December 31 (70% of the way through the process)	7,000 units
Costs:
Work in process, December 1 (transferred-in costs, $21,600; direct materials costs, $20,350; and conversion costs, $27,690)	$69,640
Transferred in from the Polishing and Cutting Department during December	97,400
Direct materials added during December	63,650
Conversion costs added during December	90,750

Requirements

1. 1. Summarize flow of physical units and compute total equivalent units for three cost categories: transferred-in, direct materials, and conversion costs.
2. 2. Summarize total costs to account for and compute the cost per equivalent unit for each cost category.
3. 3. Assign total costs to (a) units completed and transferred to Finished Goods Inventory and (b) units in December 31 Work in Process Inventory.