Chapter 5, Problem 5.50BE

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

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

Units:
Work in process, May 1 (80% of the way through the process)	9,000 units
Transferred in from the Polishing and Cutting Department during May	23,000 units
Completed during May	? units
Work in process, May 31 (70% of the way through the process)	2,000 units
Costs:
Work in process, May 1 (transferred-in costs, $1,600; direct materials costs, $20,450: and conversion costs, $37,890)	$59,940
Transferred in from the Polishing and Cutting Department during May	97,600
Direct materials added during May	53,150
Conversion costs incurred during May	90,850

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 May 31 Work in Process Inventory.