Question
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
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:
Molding | Assembly | |||
Beginning inventories: | ||||
Physical units | 10,000 | 8,000 | ||
Costs: | ||||
Transferred in | $45,400 | |||
Direct materials | $22,000 | |||
Conversion costs | $13,800 | $16,700 | ||
Current production: | ||||
Units started | 25,000 | ? | ||
Units transferred out | 30,000 | 35,000 | ||
Costs: | ||||
Transferred in | ? | |||
Direct materials | $56,750 | $40,250 | ||
Conversion costs | $103,500 | $143,000 | ||
Percentage of completion: | ||||
Beginning inventory | 40% | 50% | ||
Ending inventory | 80 | 50 |
Required:
1. Using the FIFO method, prepare the following for the Molding Department:
a. A physical flow schedule
Units to account for: | ||
Units, beginning work in processStarted and completedUnits, 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 e4d75f03000503f_5 | |
Units accounted for: | ||
Units completed and transferred out: | ||
From beginning work in processStarted and completedUnits started in February (transferred in) | - Select - | |
From beginning work in processUnits started in February (transferred in) | - Select - | |
From beginning work in processUnits, ending work in processUnits started in February (transferred in) | - Select - | |
Total units accounted for | fill in the blank e4d75f03000503f_12 |
b. An equivalent units calculation
Total Equivalent Units | |
Direct Materials | fill in the blank 7b1194f1a02900a_1 |
Conversion Costs | fill in the blank 7b1194f1a02900a_2 |
c. Calculation of unit costs. Round your answer to the nearest cent. $fill in the blank 7b1194f1a02900a_3 per unit
d. Cost of ending work in process and cost of goods transferred out. Cost of ending work in process: $fill in the blank 7b1194f1a02900a_4 Cost of goods transferred out: $fill in the blank 7b1194f1a02900a_5
e. A cost reconciliation.
Costs to account for: | |
---|---|
Beginning work in process | $fill in the blank 7b1194f1a02900a_6 |
Costs incurred | fill in the blank 7b1194f1a02900a_7 |
Total costs to account for | $fill in the blank 7b1194f1a02900a_8 |
Costs accounted for: | |
---|---|
Transferred out | $fill in the blank 7b1194f1a02900a_9 |
Ending work in process | fill in the blank 7b1194f1a02900a_10 |
Total costs accounted for | $fill in the blank 7b1194f1a02900a_11 |
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) | Accounts PayableCashConversion Costs-ControlMaterials InventoryWork in Process-Molding | - Select - | |
CashFinished GoodsMaterials InventoryWork in Process-Assembly | - Select - | ||
(b) | CashConversion Costs-ControlCost of Goods SoldMaterials InventoryWork in Process-Molding | - Select - | |
CashConversion Costs-ControlFinished GoodsWork in Process-Assembly | - Select - | ||
(c) | CashConversion Costs-ControlMaterials InventoryWork in Process-Assembly | - Select - | |
CashFinished GoodsWork in Process-AssemblyWork in Process-Molding | - Select - |
3. Repeat Requirements 1 and 2 for the Assembly Department.
a. A physical flow schedule
Units to account 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 01a178fb1fbefb0_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 processStarted and completedUnits, ending work in process | - Select - | |
Units, beginning work in processUnits, ending work in processUnits started in February (transferred in) | - Select - | |
Total units accounted for | fill in the blank 01a178fb1fbefb0_12 |
b. An equivalent units calculation
Total Equivalent Units | |
Direct Materials | fill in the blank 02619ffa400bfd9_1 |
Conversion Costs | fill in the blank 02619ffa400bfd9_2 |
Transferred In | fill in the blank 02619ffa400bfd9_3 |
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. $fill in the blank 02619ffa400bfd9_4 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: $fill in the blank 02619ffa400bfd9_5 Cost of goods transferred out: $fill in the blank 02619ffa400bfd9_6
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 | $fill in the blank 02619ffa400bfd9_7 |
Costs incurred | fill in the blank 02619ffa400bfd9_8 |
Total costs to account for | $fill in the blank 02619ffa400bfd9_9 |
Costs accounted for: | |
---|---|
Transferred out | $fill in the blank 02619ffa400bfd9_10 |
Ending work in process | fill in the blank 02619ffa400bfd9_11 |
Total costs accounted for | $fill in the blank 02619ffa400bfd9_12 |
Note: Cost reconciliation totals differ by $1 due to rounding error.
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) | Accounts PayableCashConversion Costs-ControlMaterials InventoryWork in Process-Assembly | - Select - | |
Accounts PayableCashCost of Goods SoldFinished GoodsMaterials Inventory | - Select - | ||
(b) | Accounts PayableCashConversion Costs-ControlMaterials InventoryWork in Process-Assembly | - Select - | |
Accounts PayableCashConversion Costs-ControlCost of Goods SoldFinished Goods | - Select - | ||
(c) | Accounts PayableCashConversion Costs-ControlFinished GoodsMaterials Inventory | - Select - | |
|
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