Problem - Emerging Dock Company manufactures boat docks on an assembly line. Its standard costing system uses two cost categories, direct materials and conversion costs. Each product must pass through the Assembly Department and the Finishing Department. Direct materials are added at the beginning of the production process. Conversion costs are allocated evenly throughout production.
Data for the Assembly Department for May 20X5 are:
Work in process, beginning inventory: 70 units
Direct materials (100% complete)
Conversion costs (25% complete)
Units started during May 40 units
Work in process, ending inventory: 10 units
Direct materials (100% complete)
Conversion costs (50% complete)
Costs for May:
Standard costs for Assembly:
Direct materials $8,000 per unit
Conversion costs $32,000 per unit
Work in process, beginning inventory:
Direct materials $280,000
Conversion costs $520,000
Required:
1. Calculate the cost of the units transferred out of Assembly Department.
2. What is the balance in ending work-in-process inventory in the Assembly Department?