FIFO Method, Two-Department Analysis 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: Beginning inventories: Molding Assembly Physical units 10,000 8,000 Costs: Transferred in $45,300 Direct materials $22,000 Conversion costs $13,800 $16,900 Current production: Units started 25,000 ? Units transferred out 30,000 35,000 Costs: Transferred in Direct materials Conversion costs Percentage of completion: Beginning inventory Ending inventory Required: - ? $56,250 $40,250 $103,500 $143,000 40% 50% 80 50 1. Using the FIFO method, prepare the following for the Molding Department: a. A physical flow schedule Units to account for: Muskoge Company Molding Department Physical Flow Schedule Units, beginning work in process Units started in February (transferred in) Total units to account for 10,000 25,000 35,000 Units accounted for: Units completed and transferred out: Started and completed 20,000 From beginning work in process 10,000 Units, ending work in process 5,000 Total units accounted for 35,000 Feedback b. An equivalent units calculation Total Equivalent Units Direct Materials Conversion Costs 25,000 30,000 c. Calculation of unit costs. Round your answer to the nearest cent. 5.70 per unit d. Cost of ending work in process and cost of goods transferred out. Cost of ending work in process: $ 25,050 Cost of goods transferred out: e. A cost reconciliation. 170,500 Costs to account for: Beginning work in process 35,800 Costs incurred 159,750 Total costs to account for 195,550 Costs accounted for: Transferred out 170,500 Ending work in process 25,050 Total costs accounted for 195,550 Feedback 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. (a) Work in Process-Molding Materials Inventory (b) (c) Feedback 159,750 X 159,750 X 3. Repeat Requirements 1 and 2 for the Assembly Department. a. A physical flow schedule Units to account for: Muskoge Company Assembly Department Physical Flow Schedule Units, beginning work in process Units started in February (transferred in) Total units to account for 35,800 X 25,000 X 35,000 X Units accounted for: Units completed and transferred out: 1 Started and completed 30,000 X From beginning work in process 5,000 X Units, ending work in process 35,000 X Total units accounted for Feedback b. An equivalent units calculation Direct Materials Conversion Costs Transferred In Total Equivalent Units c. Calculation of unit costs. If required, round your intermediate computations and final answer to four decimal places and use the rounded answer in subsequent computations. 5.69 X per unit d. Compute the following. For interim computations, carry amounts out to four decimal places. Round your final answers to the nearest dollar. Cost of ending work in process: 27,675 X Cost of goods transferred out: $386,175 X e. A cost reconciliation. When necessary, round equivalent cost per unit to four decimal places, and round all other amounts to the nearest dollar. Costs to account for: Beginning work in process 0x Costs incurred 353,750 Total costs to account for 413,850 X Costs accounted for: Transferred out 385,175 X Ending work in process Total costs accounted for Note: Cost reconciliation totals differ by $1 due to rounding error. 27,675 X 413,850 X Feedback 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) (b) (c) Feedback 159,750 X