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Question: Luxman Company has several processing departments. Costs charged to the Assembly Department for October 2017 totaled $1,298,400 as follows.
Work in process units, October 1
Materials
$29,000
Conversion costs
16,500
$45,500
Materials added
1,006,000
Labor
138,900
Overhead
108,000
Production records show that 25,000 units were in beginning work in process 40% complete as to conversion cost, 435,000 units were started into production, and 35,000 units were in ending work in process 40% complete as to conversion costs. Materials are entered at the beginning of each process.
Instructions: Transferred out $1,211,250
WIP $ 87,150
(a) Determine the equivalent units of production and the unit production costs for the Assembly Department.
(b) Determine the assignment of costs to goods transferred out and in process.
(c) Prepare a production cost report for the Assembly Department
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