Steps in Preparing a Production ReportRecently, 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: Production: Units in process, April 1, 60% complete60,000 Units completed and transferred out150,000 Units in process, April 30, 20% complete30,000 Costs: WIP, April 1: Cabinets$1,200,000 Kicker components12,600,000 Conversion costs5,400,000 Costs added during April: Cabinets$2,400,000 Kicker components25,200,000 Conversion costs8,640,000 4. Calculate the cost of units transferred out and the cost of EWIP inventory.Cost of units transferred outCost of ending work in process5. Prepare a cost reconciliation for the assembly department for the month of April.Assembly DepartmentCost ReconciliationFor the Month of AprilCosts to account for:Beginning work in processIncurred during AprilTotal costs to account forCosts accounted for:Goods transferred outGoods in ending work in processTotal costs accounted for 1. Prepare a physical flow analysis for the assembly department for the month of April.Assembly DepartmentPhysical Flow AnalysisFor the Month of AprilUnits to account for:Units in beginning work in processUnits started during the periodTotal units to account forUnits accounted for:Units completed and transferred out:Started and completedFrom beginning work in processUnits in ending work in processTotal units accounted for2. Calculate equivalent units of production for the assembly department for the month of April.Cabinetsequivalent unitsComponentsequivalent unitsConversionequivalent units3. Calculate unit cost for the assembly department for the month of April.Per UnitCabinetsComponentsConversionTotal

Production Cost Report-:The Production Cost Report is a document that summarizes the output and cost…

Answered: Wrangler, producing the desired…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Steps in Preparing a Production Report

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:

Production:
Units in process, April 1, 60% complete	60,000
Units completed and transferred out	150,000
Units in process, April 30, 20% complete	30,000
Costs:
WIP, April 1:
	Cabinets	$1,200,000
	Kicker components	12,600,000
	Conversion costs	5,400,000
Costs added during April:
	Cabinets	$2,400,000
	Kicker components	25,200,000
	Conversion costs	8,640,000

4. Calculate the cost of units transferred out and the cost of EWIP inventory.
Cost of units transferred out
Cost of ending work in process
5. Prepare a cost reconciliation for the assembly department for the month of April.
Assembly Department
Cost Reconciliation
For the Month of April
Costs to account for:
Beginning work in process
Incurred during April
Total costs to account for
Costs accounted for:
Goods transferred out
Goods in ending work in process
Total costs accounted for

1. Prepare a physical flow analysis for the assembly department for the month of April.
Assembly Department
Physical Flow Analysis
For the Month of April
Units to account for:
Units in beginning work in process
Units started during the period
Total units to account for
Units accounted for:
Units completed and transferred out:
Started and completed
From beginning work in process
Units in ending work in process
Total units accounted for
2. Calculate equivalent units of production for the assembly department for the month of April.
Cabinets
equivalent units
Components
equivalent units
Conversion
equivalent units
3. Calculate unit cost for the assembly department for the month of April.
Per Unit
Cabinets
Components
Conversion
Total

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