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Managerial Accounting: The Corners...

7th Edition
Maryanne M. Mowen + 2 others
ISBN: 9781337115773

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BuyFindarrow_forward

Managerial Accounting: The Corners...

7th Edition
Maryanne M. Mowen + 2 others
ISBN: 9781337115773
Textbook Problem
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Recently, Stillwater Designs expanded its market by becoming an original equipment supplier to Jeep Wrangler. Stillwater Designs produces factory upgraded speakers specifically for Jeep Wrangler. The Kicker components and speaker cabinets are outsourced with assembly remaining in house. Stillwater Designs assembles the product by placing the speakers and other components in cabinets that define an audio package upgrade and that can be placed into the Jeep Wrangler, producing the desired factory-installed appearance. Speaker cabinets and associated Kicker components are added at the beginning of the assembly process.

Assume that Stillwater Designs uses the weighted average method to cost out the audio package. The following are cost and production data for the assembly process for April:

Chapter 6, Problem 58P, Recently, Stillwater Designs expanded its market by becoming an original equipment supplier to Jeep

Required:

  1. 1. Prepare a production report for the assembly department for the month of April.
  2. 2. CONCEPTUAL CONNECTION Write a one-page report that compares the purpose and content of the production report with the job-order cost sheet.

1.

To determine

Prepare production report of Company SWD for the assembly department.

Explanation

Production Report:

The document comprises all the activities of process department related to manufacturing which occurs; in a particular period of time is called production report. It helps to identify the efficiency of process department.

Prepare production report of company SWD as shown below:

Company SWD
Assembly Department
Production Report for April Month
Weighted Average Method

Unit Information

Physical Flow:
Units to accounted for:UnitsUnits to accounted for:Units
Units in beginning work in process60,000Units completed150,000
Units started120,000Units in ending work in process30,000
Total units to account for180,000Total units accounted for180,000

Table (1)

Equivalent

Units

Cabinets

Kicker

component

Conversion

cost

Units completed150,000150,000150,000
Units in ending work in process30,00030,0006,000 (0.2×30,000)
Total equivalent units180,000180,000156,000

Table (2)

<
Cost Information
Costs to account for:

Cabinets

($)

Kicker

Component

($)

Conversion

Cost

($)

Total
Beginning work in process1,200,00012,600,0005,400,00019,200,000
Add: Incurred during the period2,400,00025,200,0008,640,00036,240,000

Total costs to account for

(A)

3,600,00037,800,00014,040,00055,440,000

2.

To determine

Prepare a report constituting a comparison of purpose and content of production report with job order cost sheet.

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