Reference no: EM132869328

Problem - Sanyo Corporation manufactures a popular model of business calculators in a suburb of Seoul, South Korea. The production process goes through two departments: assembly and testing. The following information (in thousands of South Korean currency, the won) pertains to the testing department for the month of July.

Work-in-Process Inventory, July 1 6,000 units

Transferred-in costs 71,050 won (100% complete)

Costs added in July Direct materials 27,175 won (100% complete)

Conversion 31,760 won (80% complete)

During the month of July, 15,000 units were transferred in from the assembly department at the cost of 144,200 won, and the testing department added costs of 204,720 won, as follows:

Direct materials 93,920 won

Conversion 110,800 won

During the month, 18,000 units were completed and transferred to the warehouse. At July 31, the completion percentage of Work-in-Process was as follows:

Direct materials 90%

Conversion 60%

Required - Prepare the production cost report of the testing department for the month of July using weighted-average process costing.