Position Company manufactures an automotive GPS product. The manufacturing costs of the Assembly Department were:

For simplicity, assume that this is a two-department company— assembly and finishing. There was no beginning work-in-process.

Suppose 900,000 units were begun in the assembly department. There were 600,000 units completed and transferred to the finishing department. The 300,000 units in ending work-in-process were fully completed regarding direct materials but half completed regarding conversion costs.

1. Compute the equivalent units and unit costs in the assembly department.

2. Compute the costs of units completed and transferred to the finishing department. Also compute the cost of the ending work-in-process in the assembly department.

3. Prepare summary journal entries for the use of direct materials, direct labour, and factory overhead applied. Also prepare a journal entry for the transfer of goods completed and transferred. Show the postings to the work-in-process–Assembly Department account.

Transcribed Image Text:

Direct materials added Conversion costs Direct labour $1,620,000 $475,000 Factory overhead Assembly costs to account for 275,000 750,000 $2,370,000