Southwest Corporation uses the weighted average method for its process costing system. The Assembly department at Southwest began the month of April with 6,000 units in work-in-process inventory, all of which were completed and transferred out during April. An additional 8,000 units were started during the month, 3,000 of which were completed and transferred out during April. A total of 5,000 units remained in work-in-process inventory at the end of April and were at varying levels of completion, as shown in the following:

Labels	% Complete
Direct materials	40
Direct labor	30
Overhead	50

The following cost information is for the Assembly department at Southwest Corporation for the month of April:

Labels	Direct Materials	Direct Labor	Overhead	Total
Beginning WIP Inventory	$300,000	$350,000	$250,000	$900,000
Incurred during the month	$180,000	$ 200,000	$170,000	$550,000

For this assignment, complete the following:

1. Determine the units to be accounted for and units accounted for; then calculate the equivalent units for direct materials, direct labor, and overhead. (Hint: this requires performing step 1 of the four-step process.)
2. Calculate the cost per equivalent unit for direct materials, direct labor, and overhead. (Hint: this requires performing step 2 and step 3 of the four-step process.)
3. Assign costs to units transferred out and to units in ending WIP inventory. (Hint: this requires performing step 4 of the four-step process.)
4. Confirm that total costs to be accounted for (from step 2) equal total costs accounted for (from step 4). Note that minor differences may occur due to rounding the cost per equivalent unit in step 3.

EXERCISES: Set B (continued) 29. Production Cost Report: Weighted Average Method Summary of Physical Units and Equivalent Unit Calculations (step 1): 9. Production Cost Report: Weighted Average Method (continued) Summary of costs to be accounted for (step 2): Calculation of cost per equivalent unit (step 3)