Autofab Ltd uses a process costing system. A unit of product passes through three departments-Moulding, Assembly and Finishing-before it is completed. The following production took place in the Finishing Department during May:

Units

Work in process inventory, 1 May.........................................1400

Units transferred in from Assembly Department......................14,000

Units transferred out to finished goods inventory.....................11,900

Raw material is added at the beginning of processing in the Finishing Department. The work in process inventory was 70 per cent complete as to conversion on 1 May, and 40 per cent complete as to conversion on 31 May.

Autofab Ltd uses the weighted average method of process costing. The equivalent units and costs per equivalent unit of production for each cost element for the Finishing Department are shown as follows:

Required:
1. Calculate the following amounts:
(a) Cost of units transferred to finished goods inventory during May.
(b) Cost of the Finishing Department's work in process inventory on 31 May.
2. The total costs of prior departments included in the work in process inventory of the Finishing Department on I May amounted to $6750. Prepare the journal entry to record the transfer of the goods from the Assembly Department to the Finishing Department during May.

Equivalent units Cost per equivalent unit Transferred-in costs Raw material 15 400 15 400 13 300 $5.00 1.00 Conversion cost 3.00 Total $9.00