Galaxy Manufacturing Company makes golf balls to be distributed and sold at local golf clubs.

The golf balls have special features that increase distance and speed at the driving range. The

company uses a process costing system to accumulate product costs as the golf balls move

through the two stages of production: molding the rubber into cases and stamping. All

materials are added at the beginning of both molding and stamping processes, while conversion

costs are applied evenly throughout the process.

At the beginning of September, the Molding Department had 1,000 golf balls in process

that were 50% complete. The company had incurred $1,300 in direct materials cost and $1,250

in conversion cost to make them. During the month, the department added $13,195 more of

direct materials and $32,875 in conversion costs. A total of 9,150 golf balls were finished during

September and transferred to the Stamping Department. At the end of the month, 2,000 golf

balls that were 30% complete remained in the Molding Department.

Timmy Woods, the CFO of Galaxy Manufacturing Company, needs the following calculations:

a)

Calculate the number of golf balls started in the Molding Department during September.

b)

Calculate the equivalent units of production for the Molding Department during

September. (Hint: Materials equivalent units and conversion equivalent units will not be

the same.)

c)

What was the ending balance in the Molding Departments Work in Process Inventory

account in dollars?

d)

How much cost was transferred from the Molding Department to the Stamping

department during September?

e)

Reconcile both the physical units and the product costs for the Molding Department in

September.