WaterBound uses three processes to manufacture lifts for personal watercraft: forming a lift's parts from galvanized steel, assembling the lift, and testing the completed lifts. The lifts are transferred to finished goods before shipment to marinas across the country. WaterBound's Testing Department requires no direct materials. Conversion costs are incurred evenly throughout the testing process. Other information follows: The cost transferred into Finished goods inventory is the cost of the lifts transferred out of the Testing Department. WaterBound uses weighted-average process costing.
Units:
Begining W. I.P 2000 units
Transferred in from Assembling deprtt. 7000
Completes during period 4000
Ending W. I.P 40% completed 5000
Costs:
Begining W. I.P transferred in cost 93000
conversion cost 18000
11000
Transferred in from assembling department 672000
Conversion cost added during period 54000
Requirements
1. Draw a timeline for the Testing Department.
2. Use the timeline to compute the number of equivalent units of work performed by the Testing Department during the period.
3. Compute WaterBound's transferred-in and conversion costs per equivalent unit. Use the unit costs to assign total costs to (a) units completed and transferred out of Testing and (b) units in Testing's ending Work in process inventory.
4. Compute the cost per unit for lifts completed and transferred out to Finished goods inventory. Why would management be interested in thiscost?

Exercise 18-15 sheffield appliance center is an experienced home appliance dealer. sheffield appliance center also offers a number of services for the home appliances that it sells. assume that sheffield appliance center sells ovens on a standalone basis. sheffield appliance center also sells installation services and maintenance services for ovens. however, sheffield appliance center does not offer installation or maintenance services to customers who buy ovens from other vendors. pricing for ovens is as follows. oven only $790 oven with installation service 850 oven with maintenance services 970 oven with installation and maintenance services 990 in each instance in which maintenance services are provided, the maintenance service is separately priced within the arrangement at $180. additionally, the incremental amount charged by sheffield appliance center for installation approximates the amount charged by independent third parties. ovens are sold subject to a general right of return. if a customer purchases an oven with installation and/or maintenance services, in the event sheffield appliance center does not complete the service satisfactorily, the customer is only entitled to a refund of the portion of the fee that exceeds $790. assume that a customer purchases an oven with both installation and maintenance services for $990. (b) indicate the amount of revenue that should be allocated to the oven, the installation, and to the maintenance contract.