The Assembly Department of Zip Surge Protectors began Septemberwith no work in process inventory. During the? month, productionthat cost $50,786 ?(direct materials, $12,386?, and conversion?costs, $38,400?) was started on 27,000 units. Zip completed andtransferred to the Testing Department a total of 20,000 units. Theending work in process inventory was 36%

complete as to direct materials and 80% complete as toconversion work.

Requirements

1. Compute the equivalent units for directmaterials and conversion costs.

2. Compute the cost per equivalent unit.

3. Assign the costs to units completed andtransferred out and ending work in process inventory.

4. Record the journal entry for the coststransferred out of the Assembly Department to the TestingDepartment.

5. Post all of the transactions in the Work inProcess

Inventorylong dash—Assembly

?T-account. What is the ending? balance?

Zip Surge Protectors
Assembly Department
Flow of Physical Units and Computation of Equivalent Units
	Flow of	Equivalent Units
	Physical	Direct	Conversion
Flow of Production	Units	Materials	Costs

Completed and transferred out during September or Ending work process in Septermber 30 or Total Physical units Accounted for or

Requirement 2. Compute the cost per equivalentunit. ?(For entries with a zero? balance, make sure toenter? "0" in the appropriate column. Round the cost per equivalentunit to the nearest? cent.)

Cost per Equibalent unit

	Direct Materials cost	Conversion costs

equirement 3. Assign the costs to unitscompleted and transferred out and ending work in process inventory.?(Enter quantities? first, then the cost per equivalentunit amounts in the same order as calculated in the preceding step.Round your answers to the nearest whole? dollar.)

Zip Surge Protectors
Assembly Department
Assignment of Costs
	Assign costs:	Direct Materials			Conversion Costs				Total
			x (		+		)
			x
							x
	Total cost accounted for

Requirement 4. Record the journal entry for thecosts transferred out of the Assembly Department to the TestingDepartment. ?(Record debits? first, then credits.Explanations are not? required.)

Journal Entry
Date		Accounts	Debit	Credit

Requirement 5. Post the transactions to theWork in Process Inventorylong dash—Assembly ?T-account. What is theending? balance? ?(For entries with a zero? balance, makesure to enter? "0" in the appropriate column. Leave any unusedcells? blank.)

Work in Process Inventory—Assembly

Bal Sept 1
Bal sept 30