Toronto Timers Inc.'s costing system uses two cost categories: direct materials and conversion costs. Each of its products must go through the assembly department and the testing department. Direct materials are added at the beginning of production. Conversion costs are allocated evenly throughout production. Data for the assembly department for June 2016 are as follows:
Production Data-Units
Work in process, beginning inventory
(60% complete in terms of conversion costs) ....................... 850 units
Units started during June .............................................. 1,300 units
Work in process, ending inventory ................................... 450 units
Cost Data
Work in process, beginning inventory costs
Direct materials ....................................................... 382,500
Conversion costs ....................................................... 255,000
Direct materials costs added during June .......................... 2,500,000
Conversion costs added during June ............................... 2,800,000
Instructions
(a) Determine what unit cost can be calculated from the information provided for work in process beginning inventory.
(b) Calculate how many units were completed and transferred out of the assembly department during June 2016.