As Crane Manufacturing produced bookshelves this month, its accountants were in contact with production managers to keep tabs on costs. The WIP Inventory-Assembly account had a beginning balance as follows: DM costs of $43,300 and conversion costs of $31,500. Additional DM costs were added to this assembly department this month totaling $99,696, along with conversion costs of $51,815. Direct materials were pulled from RM Inventory, while conversion costs consisted of accrued DL costs of $35,715 and applied MOH of $16,100. During the month 3,000 physical units were completed.

Crane uses FIFO method of process costing and reported the following equivalent units this month.

	DM	Conversion Costs
Total equivalent units of work done this period	2,480	2,410

(a) Record the journal entries to recognize (1) the transfer of DM into the assembly department and (2) the use of assembly-related conversion costs.

No	Account Titles & Explanation	Debit	Credit
1	WIP Inventory-Assembly	$99,696
	RM Inventory		$99,696
2	WIP Inventory-Assembly	$51,815
	Salaries & Wages Payable		$35,715
	MOH Control		$16,100

(b) Following the FIFO method of process costing, determine the following.

1. Total costs to account for in the assembly department.
2. The cost per equivalent unit for DM.
3. The cost per equivalent unit for conversion costs.