Suppose a company uses process costing. For the month of Aug…
Suppose a company uses process costing. For the month of August, Department A has zero units in beginning work in process inventory. During August, 300 units of the company’s product are started by Department A. At the end of August, 200 of the units were completed and transferred to Department B; the other 100 units were fully processed with respect to direct materials and were, on average, 30% processed for conversion costs. During August, Department A incurred direct materials costs of $27,000, and conversion costs of $57,500. For Department A, what is the total amount of cost assigned to the units that were completed at the end of August?
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