Question

Refer to the information in QS 16-10. Assign costs to the assembly department’s output—specifically, the units transferred out to the painting department and the units that remain in process in the assembly department at month-end. Use the weighted-average method.

Short answer

The cost assigned to units transferred out to the painting department:$20,700

The cost assigned to ending inventory of assembly:$3,570

Step-by-step solution

Definition of Process costing

The cost method used by the business entity that produces a higher number of products with similar specifications is known as process costing. Under this method, the total cost incurred by the business entity is allocated to each unit by dividing the total cost by the total units produced.

Cost assigned to units transferred out to the painting department

Particular	EUP	Cost per EUP	Total cost
Material	9,000	$1.0	9,000
Conversion	9,000	$1.3	11,700
Total			$20,700

Cost assigned to ending inventory of assembly department

Particular	EUP	Cost per EUP	Total cost
Material	2,400	$1.0	2,400
Conversion	900	$1.3	1,170
Total			$3,570