Skatehut Limited manufactures electric scooter parts for different types of scooters. As each type of product is manufactured in large quantities by the company, the unit cost of each product is determined by a process costing system. The Moulding Department manufactures scooter parts and transfers them to the Assembly Department for assembly. Upon completion of assembly, scooter parts are delivered to the Packing Department.
For the month of June, the following costs and production figures are presented for the Assembly Department:
Production Data (in units):
\begin{tabular}{|c|c|}
\hline \multicolumn{2}{|l|}{ Production Data (in units) } \\
\hline \begin{tabular}{l}
Beginning WIP Inventory ( [tex]$70 \%$[/tex] complete as to material; \\
[tex]$40 \%$[/tex] complete as to conversion)
\end{tabular} & 35,000 \\
\hline Started in June & 230,000 \\
\hline Completed and transferred out & 225,000 \\
\hline \begin{tabular}{l}
Ending WIP Inventory ( [tex]$75 \%$[/tex] complete as to material; \\
[tex]$25 \%$[/tex] complete as to conversion)
\end{tabular} & 40,000 \\
\hline
\end{tabular}
Cost Data (in dollars):
\begin{tabular}{|l|r|r|}
\hline \multicolumn{2}{|c|}{ Cost Data (in dollars) } \\
\hline & Material & Conversion \\
\hline Beginning WIP Inventory & \[tex]$183,600 & \$[/tex]65,800 \\
\hline Current period & \[tex]$1,346,400 & \$[/tex]874,200 \\
\hline
\end{tabular}
Required:
1. Determine the cost per equivalent unit for the Assembly Department's direct materials and conversion costs, and the total unit cost for the current period, under the:
a. Weighted-Average method
b. FIFO method
2. Assign total costs to units completed (and transferred out) to the Packing Department and to units in ending work in process in the Assembly Department.
