Parandah Electronics Ltd., located in England, assembles a standard electrical component from parts it purchases from various suppliers. The production process consists of several steps, starting with assembly, which takes place in the Assembly Department. The company recently hired a new accountant, who prepared the following report for the department for May, using the weighted-average method:

The company€™s management would like some additional information about May€™s operation in the Assembly Department. (The currency in England is the pound, denoted by the symbol £.)
Required:
1. How many units were started and completed during May?
2. What were the equivalent units for May for materials and conversion costs?
3. What were the costs per equivalent unit for May? The following additional data are available concerning the department€™s costs:

4. Verify the accountant€™s ending work in process inventory figure (£12,450) given in the report.
5. The new manager of the Assembly Department is asked to estimate the incremental cost of processing an additional 1,000 units through the department. He takes the unit cost for an equivalent whole unit that you computed in (3) above and multiplies this figure by 1,000. Will this method yield a valid estimate of incremental cost? Explain.

Quantity Schedule Units to be accounted for: Work in process, May 1 (materials 90% complete; conversion 80% complete).. Started into production... Total units... 8,000 26,000 34,000 Units accounted for as follows: Transferred to next department... Work in process, May 31 (materials 75% complete; conversion 50% complete).. Total units... 28,000 6,000 34,000 Cost Reconciliation Cost to be accounted far: Work in process, May 1... Cost added in the department. 13,400 87,800 Total cost to be accounted for . 101,200 Cost accounted for as follaws: Work in process, May 31....................... Transferred to next department.. 12,450 88,750 ********** Total cost accounted for ... 101,200