Wilson Dynamics makes flanges in a continuous process through two departments: Forging and Assembly. All direct materials are added at the beginning of the process in the Forging Department, whereas all direct materials are added at the end of the process in the Assembly Department. Conversion costs are incurred uniformly over time in both departments. As units are completed in the Forging Department they are transferred to the Assembly Department. The costs associated with the transferred units are included in the computation of the Assembly Department’s total costs. The information presented below was compiled at the end of July:

Instructions
a. Complete the following requirements for the Forging Department:
1. Prepare a schedule showing units started and completed in the Forging Department during July.
2. Compute the equivalent units of direct materials and conversion for the Forging Department in July.
3. Determine the cost per equivalent unit of input resource for the Forging Department during July.
4. Prepare the summary journal entry required to transfer units from the Forging Department to the Assembly Department during July.
5. Compute the costs assigned to ending inventory in the Forging Department on July 31.
b. Complete the following requirements for the Assembly Department:
1. Prepare a schedule showing units started and completed in the Assembly Department during July.
2. Compute the equivalent units of direct materials and conversion for the Assembly Department in July. Direct materials include both those transferred in from the Forging
Department and those added by the Assembly Department.
3. Determine the cost per equivalent unit of input resource for the Assembly Department during July.
4. Prepare the summary journal entry required to transfer units from the Assembly Department to Finished Goods Inventory during July.
5. Compute the costs assigned to ending inventory in the Assembly Department on July31.

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Forging Assembly Department Department Beginning Inventories (on July 1) Physical units in production carried forward from June 30 Costs 5,000 4,000 Transferred Forging costs carried forward from June 30 68,000 Direct materials costs carried forward from June 30 .S 45,000 16,000 Conversion costs carried forward from June 30 3,000 Current Production (in July) Units started during July Units in ending inventories as of July 31 . Costs 75,000 8,000 16,000 Forging costs transferred to Assembly during July. Direct materials costs incurred in July . . Conversion costs incurred in July $675,000 608,000 $720,000 191,400 Percentage of Completion Inventories with respect to conversion on July Inventories with respect to conversion on July 31 . . . . .. . . 25% 30 40% 75