Porter Handcraft is a manufacturer of picture frames for large retailers. Every picture frame passes through two departments: the assembly department and the finishing department. This problem focuses on the assembly department. The process- costing system at Porter has a single direct- cost category (direct materials) and a single indirect- cost category (conversion costs). Direct materials are added when the assembly department process is 5% complete. Conversion costs are added evenly during the assembly department’s process. Porter uses the weighted- average method of process costing. Consider the following data for the assembly department in April 2013:

aDegree of completion: direct materials, 100%; conversion costs, 40%.
bDegree of completion: direct materials, 100%; conversion costs, 5%.

Required
1. Summarize total assembly department costs for April 2013, and assign total costs to units completed (and transferred out) and to units in ending work in process.
2. What issues should the manager focus on in regard to the equivalent-unitscalculation?

Transcribed Image Text:

Physical Unit (Frames) 120 485 445 160 Direct Materials Conversion Costs Work in process, April 1 Started during April 2013 Completed during April 2013 Work in process, April 30b Total costs added during April 2013 2,140 $2,916 $18,430 $9,315