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, 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 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:

Molding Assembly Beginning inventories: 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%