Cranberry Handcraft is a manufacturer of picture frames for large retailers. Every picture frame passes through two departments: the assembly department and the finishing department. This problem focuses on the assembly department. The process-costing system at Cranberry has a single direct cost category (direct materials) and a single indirect-cost category (conversion costs). Direct materials are added when the assembly department process is 10% completo. Conversion costs are added evenly during the assembly department's process. Cranberry uses the weighted average method of process costing. Consider the following data for the assembly department in April 2020 (Click the loon to view the data.) Read the requirements Requirement 1. Summarize totai assembly department costs for April 2020, and assign them to units completed (and transferred out) and to units in ending work in process inventory Bogin by calculating the physical units and equivalent units. Equivalent Units Physical Direct Conversion Flow of Production Materials Work in process, beginning Started during current period Units Costs To account for Completed and transferred out during current period Work in process, ending Accounted for Equivalent units of work done to date Now summarize the total costs to account for Total Direct Conversion Production Costs Materials Costs - Data table hd to td sid rod Physical Units Direct Conversion (Frames) Materials Costs Work in process, April 18 90 $1,155 $1,307 Started during April 2020 515 Completed during April 2020 465 140 Work in process, April 30b Total costs added during April 2020 $16,995 $10.189 Degree of completion: direct materials, 100%; conversion costs, 40%. Degree of completion: direct materials, 100%; conversion costs, 10%. od ou Print Done one osts in account for Cranberry Handcraft is a manufacturer of picture frames for large retailers. Every picture frame passes through two departments: the sembly department and the Work in process, ending Accounted for Equivalent units of work done to date Now summarize the total costs to account for Direct Conversion Total Production Costs Materials Costs Total cost to account for Next calculato cost per equivalent unit for direct materials and conversion costs. Direct Conversion Materials Costs Divide by Cost per equivalent unit Finally assign total costs to units completed (and transferred out) and to units in ending work in process. Total Direct Conversion Production Costs Materials Costs Completed and transferred out Work in process, ending Total costs accounted for Raouirement 2. What issues should a mannoar focus on when reviewing the rulvalent units calculation? Production Costs Total costs to account for Next calculate cost per equivalent unit for direct materials and conversion Direct Materials Completed and transferred out d out) and to un Costs added in current period Total Costs incurred to date iction Costs Equivalent units of work done to date Work in process, beginning Work in process, ending when reviewing the
