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
Cost of beginning WIP Inventory:
	Transferred-in Costs		57,800	won	100%	complete
	Direct materials		23,400	won	100%	complete
	Conversion		23,360	won	80%	complete
Units transferred in during July, from assembly					15,000	units

During the month of July, 15,000 units were transferred in from the assembly department at the cost of 141,700 won, and the testing department added costs of 201,820 won.

Direct materials ..... 92,520 won

Conversion .......109,300 won

Units completed and transferred to the warehouse during July  = 15,000

Cost transferred in from assembly during July = 141,700

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 percent

Conversion ........60 percent

Required

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

2. Check the most recent issue of The Wall Street Journal or www.federalreserve.gov/releases/H10/hist/ to learn the exchange rate between the U.S. dollar and the South Koreanwon.