OIN PROCESS-COSTING SYSTEMS 14-B2 Basic Process Costing Hassan Company produces digital watches in large quantities. The manufacturing costs of the assem- bly department were as follows Direct materials added Conversion costs $1,750,000 Direct labor $550,000 37.500 Factory overhead 687.500 $2,437,500 Assembly costs to account for For simplicity, assume that this is a two-department company, assembly and finishing. There was no beginning work in process. Suppose 700,000 units were started in the assembly department. There were 400,000 units com- pleted 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. (For journal entries, see Exercise 14-35.)