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I need help solving this problem. FIFO Method, Two-Department Analysis Muskoge Company uses a process-costing system. The company manufactures a product that is processed in
I need help solving this problem.
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 $45,300 Direct materials $22,000 Conversion costs $13,800 $16,900 Current production: Units started 25,000 ? Units transferred out 30,000 35,000 Costs: Transferred in ? Direct materials $56,250 $39,550 Conversion costs $106,500 $143,000 Percentage of completion: Beginning inventory 40% 50% Ending inventory 80 50 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: Units, beginning work in process 10,000 Units started in February (transferred in) 25,000 Total units to account for 35,000 Units accounted for: Units completed and transferred out: Started and completed 20,000 From beginning work in process 10,000 Units, ending work in process 5,000 Total units accounted for 35,000 b. An equivalent units calculation Total Equivalent Units Direct Materials 30,000 X Conversion Costs 29,000 X c. Calculation of unit costs. Round your answer to the nearest cent. 6.76 X per unit d. Cost of ending work in process and cost of goods transferred out. Cost of ending work in process: $1 29,650 X Cost of goods transferred out: $ 169,000 X e. A cost reconciliation. Costs to account for: Beginning work in process 35,800 Costs incurred 162,750 Total costs to account for 198,550 Costs accounted for: Transferred out 168,900 X Ending work in process 29,650 X Total costs accounted for 198,550 2. Prepare journal entries that show the flow of manufacturing costs for the Molding Department. (a) Materials are added at the beginning of the process, (b) conversion costs are recorded, and (c) units are transferred to the Assembly Department. 56,250 (a) Work in Process-Molding Materials Inventory 56,250 106,500 (b) Work in Process-Molding. Conversion Costs-Control 106,500 168,900 x (c) Work in Process-Assembly Work in Process-Molding 168,900 X 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 8,000 Units started in February (transferred in) 30,000 Total units to account for 38,000 Units accounted for: Units completed and transferred out: Started and completed 27,000 From beginning work in process 8,000 Units, ending work in process 3,000 Total units accounted for 38,000 b. An equivalent units calculation Total Equivalent Units Direct Materials 35,000 Conversion Costs 36,500 x Transferred In 38,000 x 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. 8.63 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: 15,930 x 302,050 x 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 $ 62,200 Costs incurred 355,740 Total costs to account for $ 417,940 Costs accounted for: Transferred out $ 396,970 Ending work in process 20,970 X Total costs accounted for $ 417,940 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. 39,550 (a) Work in Process-Assembly Materials Inventory 39,550 143,000 (b) Work in Process-Assembly Conversion Costs-Control 143,000 (c) Finished Goods 396,970 X Work in Process-Assembly 396,970 XStep by Step Solution
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