Wagon Ltd. has two processing departments (assembly and testing) and uses the FIFO method of process costing. Conversion costs are added evenly during the production process. Direct materials are added at the end of the production process. In August, the following data were recorded for the testing department:

Required:

For August, summarize the total costs to account for, compute the cost per equivalent unit for transferred-in, direct materials, and conversion costs, and assign costs to units completed and transferred out and to units in ending work-in-process.

\begin{tabular}{lcccc} Testing Department & Physicalunits & Transferred-inCosts & Directmaterials & ConversionCosts \\ \hline Work-in-process, beginning inventory, August 1* & 3,000 & $19,800 & $18,000 & $37,200 \\ & 21,000 & & & \\ Transferred in during August & 15,000 & & & \\ Completed and transferred out & 9,000 & & & \\ Work-in-process, ending inventory, August 31^ & & $144,000 & $126,000 & \\ Total costs added during August & & & \\ * Degree of completion: transferred-in 100\%; direct materials, 20\%; conversion costs, 35\% & \\ ^ Degree of completion: transferred-in 100\%; direct materials, 40\%; conversion costs, 70\% & \end{tabular}