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Big Muddy Brick Co. makes bricks used in residential and commercial construction. The firm uses process costing to determine the value of the bricks. The

Big Muddy Brick Co. makes bricks used in residential and commercial construction. The firm uses process costing to determine the value of the bricks. The firm measures actual product costs (actual product costing). The bricks pass through two departments: mixing and molding/drying.

In the mixing department, Material 1 is added at the beginning of the process and Material 2 is added at the when the bricks are 90% complete to conversion. Conversion costs are added evenly throughout the process.

In the molding/drying department, the direct material, a sealant, is added when the bricks are 98% complete. Conversion costs are added evenly throughout the process.

The following physical unit and cost information is available for the month of November:

Unit Information

Mixing Department

Beginning WIP Inventory

25,000 bricks, 60% complete to conversion

Bricks started in November

325,000 bricks

Bricks transferred to Molding/Drying in November

340,000 bricks

Ending WIP Inventory

? units, 75% complete to conversion

Molding/Drying Department

Beginning WIP Inventory

15,000 bricks, 50% complete to conversion

Ending WIP Inventory

12,000 bricks, 40% complete to conversion

Cost Information

Mixing Department

Beginning WIP Inventory, Mixing

DM 1

$500

Conversion

$3,750

Total BWIP Inventory Costs, Mixing

$4,250

Current Period Costs, Mixing

DM 1

$13,000

DM 2

$20,400

Conversion Costs (CC)

$39,900

Total Current Period Costs

$73,300

Molding/Drying Department

Beginning WIP Inventory , Molding

TI

$2,700

DM

$4,200

CC

$ 600

Total BWIP Inventory Costs, Molding

$7,500

Current Period Costs, Molding

Transferred In from Mixing

?

DM

$3,430

CC

$27,224

A. Complete a cost report for the Mixing department. Use the FIFO process costing method.

B. Prepare the journal entry to make the transfers between accounts.

C. Repeat the requirements for A & B for the Molding/Drying department.

D. Repeat requirements A,B,& C assuming the company uses the weighted average process costing method.

Please provide detailed steps.

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