eBook Weighted Average Method, Journal Entries 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: 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 Required: 1. Using the weighted average method, prepare the following for the Molding Department: a. A physical flow schedule

1. Using the weighted average method, prepare the following for the Molding Department:

a. A physical flow schedule

Molding Department, Physical flow schedule:
Units to account for:
Started and completedUnits, beginning work in processUnits, ending work in processUnits, beginning work in process	Units, beginning work in process
Started and completedUnits, ending work in processUnits started in FebruaryUnits started in February	Units started in February
Total units to account for	fill in the blank 87b616fe1facf8e_5
Units accounted for:
Units completed and transferred out:
Started and completedUnits, beginning work in processUnits started in FebruaryStarted and completed	Started and completed
From beginning work in processTotal units accounted forUnits completedUnits transferred outFrom beginning work in process	From beginning work in process
Units, beginning work in processUnits, ending work in processUnits started in FebruaryUnits, ending work in process	Units, ending work in process
Total units accounted for	fill in the blank 87b616fe1facf8e_12

Feedback

a. The physical flow schedule traces the units in process regardless of their stage of completion.

b. An equivalent units calculation

	Total equivalent units
Direct Materials	fill in the blank e1b376f43007f83_1
Conversion Costs	fill in the blank e1b376f43007f83_2

c. Calculation of unit costs. Round your intermediate computations and final answer to four decimal places. $fill in the blank e1b376f43007f83_3 per unit

d. Calculate the cost of ending work in process and cost of goods transferred out. Round your answers to the nearest dollar. Cost of ending work in process: $fill in the blank e1b376f43007f83_4 Cost of goods transferred out: $fill in the blank e1b376f43007f83_5

e. A cost reconciliation. When required, round your answers to the nearest dollar.

Costs to account for:
Beginning work in process	$fill in the blank e1b376f43007f83_6
Costs incurred	fill in the blank e1b376f43007f83_7
Total costs to account for	$fill in the blank e1b376f43007f83_8

Costs accounted for:
Transferred out	$fill in the blank e1b376f43007f83_9
Ending work in process	fill in the blank e1b376f43007f83_10
Total costs accounted for	$fill in the blank e1b376f43007f83_11

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2. Prepare journal entries that show the flow of manufacturing costs for the Molding Department. (a) Materials are added at the beginning of the process, (b) conversion costs are recorded, and (c) units are transferred to the Assembly Department. When required, round your answers to the nearest dollar.

a.	Conversion Costs-ControlFinished GoodsMaterials InventoryWork in Process-MoldingWork in Process-Molding	Work in Process-Molding
	Accounts PayableCashMaterials InventoryOverhead ControlWork in Process-AssemblyMaterials Inventory		Materials Inventory
b.	CashConversion Costs-ControlFinished GoodsMaterials InventoryWork in Process-Molding	- Select -
	Accounts PayableCashConversion Costs-ControlOverhead ControlWork in Process-Assembly		- Select -
c.	CashConversion Costs-ControlFinished GoodsMaterials InventoryWork in Process-Assembly	- Select -
	CashConversion Costs-ControlMaterials InventoryWork in Process-AssemblyWork in Process-Molding		- Select -

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3. Repeat Requirements 1 and 2 for the Assembly Department.

a. A physical flow schedule:

Assembly Department, Physical flow schedule:
Units accounted for:
Started and completedUnits, beginning work in processUnits, ending work in process	- Select -
Started and completedUnits, ending work in processUnits started in February (transferred in)	- Select -
Total units to account for	fill in the blank 8e13350b6078057_5
Units accounted for:
Units completed and transferred out:
Started and completedUnits, beginning work in processUnits started in February (transferred in)	- Select -
From beginning work in processTotal units accounted forUnits completedUnits transferred out	- Select -
Units, beginning work in processUnits, ending work in processUnits started in February (transferred in)	- Select -
Total units accounted for	fill in the blank 8e13350b6078057_12

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b. An equivalent units calculation

	Total Equivalent Units
Direct Materials	fill in the blank 0833c7fb9f9e012_1
Conversion Costs	fill in the blank 0833c7fb9f9e012_2
Transferred In	fill in the blank 0833c7fb9f9e012_3

c. Calculate the total unit costs. Round your intermediate computations and final answer to four decimal places. $fill in the blank 0833c7fb9f9e012_4 per unit

d. Calculate the cost of ending work in process and cost of goods transferred out. Round your answers to the nearest dollar. Cost of ending work in process: $fill in the blank 0833c7fb9f9e012_5 Cost of goods transferred out: $fill in the blank 0833c7fb9f9e012_6

e. A cost reconciliation. If required, round your answers to the nearest dollar.

Costs to account for:
Beginning work in process	$fill in the blank 0833c7fb9f9e012_7
Costs incurred	fill in the blank 0833c7fb9f9e012_8
Total costs to account for	$fill in the blank 0833c7fb9f9e012_9

Costs accounted for:
Transferred out	$fill in the blank 0833c7fb9f9e012_10
Ending work in process	fill in the blank 0833c7fb9f9e012_11
Total costs accounted for	$fill in the blank 0833c7fb9f9e012_12

Note: Cost reconciliation totals differ by $1 due to rounding error.

Feedback

Prepare journal entries that show the flow of manufacturing costs for the Assembly Department. (a) Materials are added at the end of the process, (b) conversion costs are recorded, and (c) the units are transferred to Finished Goods.

a.	CashConversion Costs-ControlMaterials InventoryWork in Process-AssemblyWork in Process-Molding	- Select -
	Accounts PayableCashFinished GoodsMaterials InventoryWork in Process-Molding		- Select -
b.	CashConversion Costs-ControlMaterials InventoryWork in Process-AssemblyWork in Process-Molding	- Select -
	CashConversion Costs-ControlCost of Goods SoldFinished GoodsWork in Process-Molding		- Select -
c.	Accounts PayableCashConversion Costs-ControlFinished GoodsMaterials Inventory	- Select -
	Accounts PayableCashFinished GoodsWork in Process-AssemblyWork in Process-Molding		- Select -