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

Muskoge Company Molding Department 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

Muskoge Company Assembly Department 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 -