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:

Ulldl Molding Assembly Beginning inventories: Physical units 10,000 8,000 Costs: Transferred in - $45,300 $22,000 $13,800 $16,700 25,000 ? 30,000 35,000 Direct materials Conversion costs Current production: Units started Units transferred out Costs: Transferred in Direct materials Conversion costs Percentage of completion: Beginning inventory ? $56,250 $40,250 $106,500 $136,500 40% 50% Ending inventory 80 50 Required: 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) 10,000 X 25,000 x 35,000 X 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 20,000 x 10,000 x 5,000 x Total units accounted for 35,000 x b. An equivalent units calculation Total Equivalent Units Direct Materials 25,000 x Conversion Costs 30,000 x 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. 5.8 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: 88,000 x Cost of goods transferred out: $300,240 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 35,800 X Costs incurred 162,750 x Total costs to account for $ 198,550 x Costs accounted for: Transferred out $ 173,100 X Ending work in process 25,450 x Total costs accounted for $ 198,550 X Note: Cost reconciliation totals differ by $1 due to rounding error