Cost Accounting.
The Trip Aces Playing Card Company manufactures decks of playing cards using a two-step process. First, images are glued to whole sheets of cardboard and sealed in plastic coating by the assembly department. In the second step, finished sheets are transferred to the cutting department to be cut into individual cards and packaged in decks of 52 cards. Use the following information to prepare a production cost report for each of Trip Aces' production departments for the month ended December 31, 2017: 1 2 3 Assembly Department 4 Conversion 5 Physical Units Direct Materials Costs Beginning WIP $ 5,500 $ 4,500 $ 1,000 6 (Dec 1) (a) Started in 31,500 7 December 2017 Completed 30,000 8 during May 2017 Ending WIP 7,000 9 (Dec 31) (b) Total COSES added during 14,000 7,375 10 (a) Degree of completion: direct materials 100%; conversion 11 costs 80% (b) Degree of completion direct materials 100%; conversion 12 costs 50% 13 14 Cutting Department 15 Info PC-Assembly PC-Cutting Journals + Cutting Department $ BALE 2 Physical Units Beginning WIP Direct Materials Conversion Costs Beginning WIP $ - (Dec 1)) 7.500 $ 7,500 $ $ 200 Started in December 2017 30.000 Completed 25,500 during May 2017 Ending WIP 12.000 (Dec 31) (b) TOEST CONS added during 6,375 5,500 (a) Degree of completion direct materials 80%, conversion costs 40% (b) Degree of completion direct materials 0%; conversion costs 25% 1 5 Requirements: 5 1) Prepare Trip Aces production cost report using the weighted average method then record the necessary journal entries. 7 3 The following information is pertinent for preparing the joumal entries The $7.375 of conversion couts added by the assembly department consisted of $5,000 in salaries and $2,375 in overhead costs. The $5,500 of conversion costs added by the cutting department consisted of $5,000 in employee salaries and $500 in overhead costs 1 2 3 4 Info PC-Assembly PC-Cutting Journals 3 . Trip Aces Playing Card Company Production Cost Report-Assembly Department Month Ended December 31, 2017 Equivalent Units Direct Conversion Physical Units Materials Costs Units 5 Units to account for: 7 Beginning work-in-process 3 Started in production 9 Total units to account for 10 11 Units accounted for: 12 Completed and transferred out 13 Ending work-in-process 14 Total units accounted for 15 Direct Materials Conversion Costs 16 Costs Total Costs 17 Costs to account for: 18 Beginning work-in-process 19 Costs added durina nerind Info PC-Assembly PC-Cutting Journals Ready 2 Completed and transferred out 3 Ending work-in-process 4 Total units accounted for 5 6 Costs Direct Materials Conversion Costs Total Costs 7 Costs to account for: 8 Beginning work-in-process 9 Costs added during period CO Total costs to account for 1 Divided by: Total EUP -2 Cost per equivalent unit 13 24 Costs account for: 5 Completed and transferred out 26 Ending work-in-process 27 Total costs accounted for 28 29 30 Info PC-Assembly PC-Cutting Journals Ready
