ocean bound uses three prcesses

OceanBound uses three processes to manufacture lifts for personal watercraft: forming a lift's parts from galvanized steel, assembling the lift, and testing the completed lift. (Click the icon to view additional information.) The cost transferred into Finished Goods Inventory is the cost of the lifts transferred out of the Testing Department OceanBound uses the weighted-average method. Read the requirements 50 Requirement 1. Prepare a production cost report for the Testing Department. (Round all cost per unit amounts to the nearest cent and all other amounts to the nearest whole dollar. Abbreviation used: EUP = equivalent units of production) OceanBound Production Cost Report-Testing Department Month Ended August 31 Equivalent Units Physical Transferred Direct Conversion UNITS Units In Materials Costs Units to account for: FIT Total units to account for 510 . Units accounted for n/a n/a n/a ar ori - More Info i Red he pro the country. OceanBound's Testing Department requires no direct materials. Conversion costs are incurred evenly throughout the testing process. Other information follows for the month of August: 2,200 units 7,100 units 3,800 units 5,500 units UNITS Beginning Work-in-Process Inventory Transferred in from Assembling Department during the period Completed during the period Ending Work-in-Process Inventory (40% complete for conversion work) COSTS Beginning Work-in-Process Inventory (transferred in costs, $92,000; conversion cost, $19,000) Transferred in from the Assembly Department during the period Conversion costs added during the period UN $ 111,000 Un 652,000 83,000 Tot Un Print Done ment 1. Prepare a production cost report for the Testing Department. (Round all cost per unit Requirements 1. Prepare a production cost report for the Testing Department. 2. What is the cost per unit for lifts completed and transferred out to Firished Goods Inventory? Why would management be interested in this cost? Print Done Costs accounted for 1 n/a 1 n/a n/a Total costs accounted for per lift Requirement 2. What is the cost per unit for lifts completed and transferred out to Finished Goods Inventory? Why would management be interested in this cost? The cost per unit for lifts completed and transferred out to Finished Goods Inventory is Why would management be interested in the cost per unit for lifts completed and transferred out to Finished Goods Inventory? A. Managers would compare the average cost per lift against heir budgeted costs to determine whether the costs of the Testing Department remain under control. If budgeted costs are higher than the actual average cost per lift, then the managers have done a good job controlling costs. In contrast, if the budgeted costs are lower than the actual average cost per lift, managers will investigate the reason for the higher-than-expected costs in an effort to regain control over costs. O B. Managers use the cost per lift for external financial reporting specifically to calculate the cost of Goods Sold on the income Statement OC. Managers use the cost per lift for external financial reporting-specifically to calculate the ending inventory balances on the Balance Sheet OD. All of the above are reasons why management would be interested in this cost per unit for lifts completed and transferred out to Finished Goods Inventory Tul