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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 the Molding Department. Materials are added at the beginning of the process. 3. Repeat Requirements 1 and 2 for the Assembly Department.
Cornerstones of Cost Management (C...
Solutions
Cornerstones of Cost Management (C...
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 the Molding Department. Materials are added at the beginning of the process.
- 3. Repeat Requirements 1 and 2 for the Assembly Department.
1.
Prepare production report for molding department.
- a. A physical flow schedule
- b. Equivalent unit calculation
- c. Calculate unit cost
- d. Cost of ending work in process and cost of goods transferred
- e. A cost reconciliation
Explanation of Solution
Production Cost Report: A report which gives information about the total units produced and total cost incurred during the production process is called production cost report. This report is useful for the management of the company to take decision regarding production and the measure for cost control.
Prepare production cost report for molding department...
2.
Prepare journal entries to record the flow of manufacturing costs for the molding department, if materials are added at the beginning of the process.
3.
Prepare production report for assembly department, and prepare journal entry to record manufacturing costs.
- a. A physical flow schedule
- b. Equivalent unit calculation
- c. Calculate unit cost
- d. Cost of ending work in process and cost of goods transferred
- e. A cost reconciliation
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