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, materials are added at the beginning of the process; in the Assembly Department, additional materials are added at the end of the process. In both departments, conversion costs are in¬

curred uniformly throughout the process. As work is completed, it is transferred out. The following 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

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 Assembly Department.

Transcribed Image Text:

Beginning inventories: Molding Assembly Physical units 10,000 8,000 Costs: Transferred in $45,200 Direct materials $22,000 Conversion costs $13,800 $16,800 Current production: Units started 25,000 ? Units transferred out 30,000 35,000 Costs: Transferred in ? Direct materials $56,250 $39,550 Conversion costs $103,500 $136,500 Percentage of completion: Beginning inventory 40% 50% Ending inventory 80% 50%