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 $45,200 Direct materials $22,000 Conversion costs $13,800 $16,800 Current production: Units started 25,000 ? Units transferred out 30,000 35,000 Costs: Transferred in ? $56,250 $39,550 Direct materials Conversion costs Percentage of completion: $103,500 $136,500 40% 50% Beginning inventory 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: From beginning work in process 10,000 Units started in February (transferred in) 25,000 35,000 Total units to account for Units accounted for: Units completed and transferred out: X Units, ending work in process 5,000 Total units accounted for 35,000 e. A cost reconciliation. 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 Ending work in process Total costs accounted for $ 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) 8,000 30,000 38,000 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 lu 3,000 Total units accounted for 38,000 b. An equivalent units calculation Total Equivalent Units Direct Materials Conversion Costs 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. 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: 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 62,000 Costs incurred 346,550 Total costs to account for 408,550 Costs accounted for: Transferred out Ending work in process Total costs accounted for Note: Cost reconciliation totals differ by $1 due to rounding error
