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Question(s) / Instruction(s):

Amy Electronics makes CD players in three processes: assembly, programming, and packaging. Direct materials are added at the beginning of the assembly process. Conversion costs are incurred evenly throughout the process. The Assembly Department had no Work in process inventory on October 31. In mid-November, Amy Electronics started production on 125,000 CD players. Of this number, 95,800 CD players were assembled during November and transferred out to the Programming Department. The November 30 Work in process inventory in the Assembly Department was 25% of the way through the assembly process. Direct materials costing $437,500 were placed in production in Assembly during November, and Direct labor of $200,800 and Manufacturing overhead of $134,275 were assigned to that department.

Requirements

  • 1. Compute the number of equivalent units and the cost per equivalent unit in the Assembly Department for November.
  • 2. Assign total costs in the Assembly Department to (a) units completed and transferred to Programming during November and (b) units still in process at November 30.
  • 3. Prepare a T-account for Work in process inventory—Assembly to show its activity during November, including the November 30 balance.

 

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