Kremel 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 March:

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
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.
3. Repeat Requirements 1 and 2 for the assemblydepartment.

Transcribed Image Text:

Molding Assembly cginning inventorics: Physical units Costs: 10,000 8,000 S 45,200 s 16,800 Transferred in Direct materials 22,000 S 13,800 Conversion costs Current production: Units started Units transferred out Costs: 25,000 30,000 35,000 Transferred in Direct materials Conversion costs Percentage of completion: Beginning inventorv S 56,250 S103,500 S 39,550 $136,500 40% 80% 50% 50% Ending inventory