Exercise 6

Muskoge Company manufactures a product that goes through two processes: Assembly and Painting. In the Assembly Process, direct materials are added at the beginning of the process; in the Painting Process, direct materials are added at the end of the process.

Assembly Painting

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 for conversion costs:

Beginning inventory 40% 50%

Ending inventory 80% 50%

Required

1. Prepare a production cost report for the assembly process using weighted-average costing.
2. What journal entry would be made after preparing the production cost report for the assembly process?
3. Prepare a production cost report for the painting process using weighted-average costing.
4. What journal entry would be made after preparing the production cost report for the painting process?

Follow Outline:

Production Report - Weighted-Average Method Step 1: Analysis of Physical Flor of Units: Beginning WIP 0.00 Started 0.00 Step 2: Compute Equivalent Units: Material: Conversi Trans-in Completed 0.00 0.00 Spoiled Ending WIP 0.00 0.00 0.00 0.00 0.00 Step 3: Summarize the total costs to be accounted' for: Material: Conversi Trans-i Total Cost of Beginning WIP + Costs during period - Total Costs to : Step 4: Compute Cost per Equie Material: Conversi Trans-in 0.00 s completed and to units Step 5: Assign unit costs from step 4 to u in ending work-in-process inventory Completed Spoiled Ending WIP Total