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Muskoge Company uses a process-costing system. The company manufactures a product that is processed in two departments: Molding and Assembly. In the Molding Department, direct materials are added at the beginning of the process; in the Assembly Department, additional

Muskoge Company uses a process-costing system. The company manufactures a product that is processed in two departments: Molding and Assembly. In the Molding Department, direct materials are added at the beginning of the process; in the Assembly Department, additional

Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter6: Process Costing
Section: Chapter Questions
Problem 65P: Seacrest Company uses a process-costing system. The company manufactures a product that is processed...
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Muskoge Company uses a process-costing system. The company manufactures a product that is processed in two departments: Molding and Assembly. In the Molding Department, direct materials are added at the beginning of the process; in the Assembly Department, additional direct materials are added at the end of the process. In both departments, conversion costs are incurred uniformly throughout the process. As work is completed, it is transferred out. The following table summarizes the production activity and costs for February: Molding Assembly Beginning inventories: Physical units 10,000 8,000 Costs: Transferred in $ 45,400 Direct materials $22,000 | Conversion costs $13,800 S 16,700 Current production: Units started 25,000 ? Units transferred out 30,000 35,000 Costs: Transferred in ? | Direct materials $ 56,250 $ 40,250 Conversion costs $103,500 $142,845 Percentage of completion: Beginning inventory 40% 55% Ending inventory 80 50
Transcribed Image Text:Muskoge Company uses a process-costing system. The company manufactures a product that is processed in two departments: Molding and Assembly. In the Molding Department, direct materials are added at the beginning of the process; in the Assembly Department, additional direct materials are added at the end of the process. In both departments, conversion costs are incurred uniformly throughout the process. As work is completed, it is transferred out. The following table summarizes the production activity and costs for February: Molding Assembly Beginning inventories: Physical units 10,000 8,000 Costs: Transferred in $ 45,400 Direct materials $22,000 | Conversion costs $13,800 S 16,700 Current production: Units started 25,000 ? Units transferred out 30,000 35,000 Costs: Transferred in ? | Direct materials $ 56,250 $ 40,250 Conversion costs $103,500 $142,845 Percentage of completion: Beginning inventory 40% 55% Ending inventory 80 50
Required: 3. Using the FIFO method, prepare the following for the Assembly Department: a. A physical flow schedule b. An equivalent units calculation c. Calculation of unit costs. Round your answer to the nearest cent (i.e., two decimal places). d. Cost of ending work in process and cost of goods transferred out. e. A cost reconciliation. 4. Prepare journal entries that show the flow of manufacturing costs for the Assembly Department: (a) Materials are added at the end of the process, (b) conversion costs are recorded, and (c) units are transferred to Finished Goods.
Transcribed Image Text:Required: 3. Using the FIFO method, prepare the following for the Assembly Department: a. A physical flow schedule b. An equivalent units calculation c. Calculation of unit costs. Round your answer to the nearest cent (i.e., two decimal places). d. Cost of ending work in process and cost of goods transferred out. e. A cost reconciliation. 4. Prepare journal entries that show the flow of manufacturing costs for the Assembly Department: (a) Materials are added at the end of the process, (b) conversion costs are recorded, and (c) units are transferred to Finished Goods.
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