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Fun Cars produces model toy cars for children. Car parts are first produced in the molding department. The parts for each car are then assembled
Fun Cars produces model toy cars for children. Car parts are first produced in the molding department. The parts for each car are then assembled in the assembly department. The following information is available in the assembly department for the month of September: 10,000 $100,000 $48,000 Beginning WIP (units) Costs transferred from Molding department Process costs in Assembly (30% complete) No. of unassembled cars transferred in September from Molding dept. (units) Ending work in process (units) Costs transferred from Molding dept. in September Process costs incurred in Assembly department in September 50,000 15,000 $440,000 $600,000 The ending WIP was 60% complete with respect to process costs. For the month of September, compute the following a) costs transferred out and costs in ending WIP for the assembly department using the weighted average method and (3.5 points) b) equivalent units used to allocate costs transferred in from Molding in the month of September and equivalent units used to allocate costs incurred in the assembly department in the month of September if the firm uses the FIFO method. (1.5 points)
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