Molding Assembly Beginning inventories: Physical units Costs: 10,000 8,000 Transferred in $ 45,200 $ 22,000 S 13,800 Direct materials Conversion costs S 16,800 Current production: Units started 25,000 30,000 Units transferred out 35,000 Costs: Transferred in Direct materials ? S 56,250 s103,500 S 39,550 Conversion costs $136,500 Percentage of completion: Beginning inventory Ending inventory 40% 50% 80 50

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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:

 

 

 

Required:


       1. Using the weighted average method, prepare the following for the             Molding Department:
         a. A physical flow schedule
         b. An equivalent units calculation
         c. Calculation of unit costs. Round to four decimal places.
         d. Cost of ending work in process and cost of goods                                    transferred out
         e. A cost reconciliation
       2 Prepare journal entries that show the flow of manufacturing costs              for Molding Deparment                                                                               Material are added at the begining of the process                                     3 Repeat Requirement 1 and 2 for the Assembly Department

Molding
Assembly
Beginning inventories:
Physical units
Costs:
10,000
8,000
Transferred in
$ 45,200
$ 22,000
S 13,800
Direct materials
Conversion costs
S 16,800
Current production:
Units started
25,000
30,000
Units transferred out
35,000
Costs:
Transferred in
Direct materials
?
S 56,250
s103,500
S 39,550
Conversion costs
$136,500
Percentage of completion:
Beginning inventory
Ending inventory
40%
50%
80
50
Transcribed Image Text:Molding Assembly Beginning inventories: Physical units Costs: 10,000 8,000 Transferred in $ 45,200 $ 22,000 S 13,800 Direct materials Conversion costs S 16,800 Current production: Units started 25,000 30,000 Units transferred out 35,000 Costs: Transferred in Direct materials ? S 56,250 s103,500 S 39,550 Conversion costs $136,500 Percentage of completion: Beginning inventory Ending inventory 40% 50% 80 50
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