Reference no: EM132850723
Question - McElroy, Inc., produces a single model of a popular cell phone in large quantities. A single cell phone moves through two departments, assembly and testing. The manufacturing costs in the assembly department during March follow:
Direct materials $159,600
Conversion costs 169,000
Total $328,600
The assembly department has no beginning Work-in-Process Inventory. During the month, it started 28,000 cell phones, but only 24,000 were fully completed and transferred to the testing department. All parts had been made and placed in the remaining 4,000 cell phones, but only 50% of the conversion had been completed. The company uses the weighted-average method of process costing to accumulate product costs.
Required -
1. Compute the equivalent units and costs per equivalent unit for March in the assembly department.
2. Compute the cost of units completed and transferred to the testing department.
3. Compute the cost of the ending Work-in-Process.
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