PROBLEM $3$

CST Company uses the FIFO method in its process costing system. The beginning work in process

inventory in a particular department consisted of $3,000$ units, one$-$thirds complete with respect to conversion

costs. During the month, $52,000$ units were started and $50,000$ units were completed and transferred out of

the department. The company had $52,000$ equivalent units of production for conversion costs.

Required:

What was the percentage of completion $($work done$),$ as to conversion costs on the ending Work

in Process?

PROBLEM $4$

CST Company manufactures a product in two departments, Shaping and Assembly. The product is cut

out of sheet metal, bent to shape, and painted in the Shaping Department. Then, it is transferred to the

Assembly Department. A process cost system with a Weighted average cost flow assumption is used to

account for work in process inventories. Data related to August operations in the Assembly Department

follow:

Units in beginning inventory $(75\%$ materials, $80\%$ labor and overhead$)$

Units received from the Shaping Department this period

Units transferred to Finished Goods Inventory this period

Units in ending inventory $(60\%$ materials, $50\%$ labor and overhead$)$

$2,000$

$6,000$

$5,600$

$2,400$

Costs charged to the department:

Costs from the preceding department

Materials

Direct labor

Factory overhead

Required:

Compute the equivalent units of production for Transferred in costs.

Compute the cost per equivalent units of conversion costs.

Compute the cost assigned to Finished Goods.