STEPS IN PREPARING A COST OF PRODUCTION REPORT Stillwater Designs is expanding its market by becoming an original equipment supplier to DaimlerChrysler. DaimlerChrysler will offer a high-end Kicker audio package for its Dodge Neon SRT4 line. As part of this effort, Stillwater Designs will produce the plastic cabinet prototypes that will house the Kicker speakers and amplifiers. After producing the prototype cabinets, their production will be outsourced. However, assembly will remain in-house. Stillwater Designs will assemble the product by placing the speakers and amplifiers (produced according to specifications by outside manufacturers) in the plastic cabinets. Plastic cabinets and Kicker speaker and amplifier 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 percent complete 40,000 Units completed and transferred out 100,000 Units in process, April 30, 20 percent complete 20,000 Costs:
WIP, April 1:
Plastic cabinets $ 800,000 Kicker components 8,400,000 Conversion costs 3,600,000 Costs added during April:
Plastic cabinets $ 1,600,000 Kicker components 16,800,000 Conversion costs 5,760,000 Required:
. Prepare a physical flow analysis for the assembly department for the month of April.
. Calculate equivalent units of production for the assembly department for the month of April.
. Calculate unit cost for the assembly department for the month of April.
. Calculate the cost of units transferred out and the cost of EWIP inventory.
. Prepare a cost reconciliation for the assembly department for the month of April.
Problem