The Assembly Department Uses a Process Cost Accounting System and a Weighted-Average

question 169

Essay

The Assembly Department uses a process cost accounting system and a weighted-average cost flow assumption. The department adds materials at the beginning of the process and incurs conversion costs uniformly throughout the process. During July, $190,000 of materials costs and $137,100 in conversion costs were charged to the department. The beginning work in process inventory was $93,000 on July 1, comprised of $80,000 of materials costs and $13,000 of conversion costs.
Other data for the month of July are as follows:
Instructions
Answer the following questions and show computations to support your answers.
1. How many physical units have to be accounted for in July?
2. What are the equivalent units of production for materials and for conversion costs for the month of July?
3. What is the total cost assigned to the 70,000 units that were transferred out of the process in July?
4. What is the total cost of the July 31 inventory?

---

Definitions:

Muscle Spindle

A sensory receptor located within muscles that detects changes in muscle length, contributing to the sense of body position.

Action Potentials

Rapid and temporary changes in the electrical membrane potential of a cell, allowing for the transmission of nerve impulses along neurons.

Golgi Tendon Organs

Sensory receptors located at the junction of tendons and muscles, sensitive to changes in muscle tension.

Inhibitory Neuron

Neuron that produces IPSPs and has an inhibitory influence.