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: - $45,400 $22,000 - $13,800 $16,700 Transferred in Direct materials Conversion costs Current production: Units started Units transferred out Costs: Transferred in Direct materials ? 25,000 30,000 35,000 ? $56,750 $40,250 Conversion costs $106,500 $136,500 Percentage of completion: Beginning inventory 40% 50% Ending inventory 80 50 Required: 8,000 30,000 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: Units, beginning work in process Units started in February (transferred in) Total units to account for Units accounted for: Units completed and transferred out: Started and completed From beginning work in process Units, ending work in process Total units accounted for 38,000 27,000 8,000 3,000 38,000 b. An equivalent units calculation Total Equivalent Units Direct Materials Conversion Costs 32,500 Transferred In 30,000 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. 5.54 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: Cost of goods transferred out: 18,220 x 183,080 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 16,700 x Costs incurred 184,600 X Total costs to account for 201,300 x Costs accounted for: Transferred out 183,080 x Ending work in process 18,220 X Total costs accounted for 201,300 x 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) Work in Process-Assembly 40,250 Materials Inventory 40,250 136,500 (b) Work in Process-Assembly Conversion Costs-Control 136,500 183,080 X (c) Finished Goods Work in Process-Assembly 183,080 X