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If you open image in new table by right clicking, it should be clear! Mundy Handcraft is a manufacturer of picture frames for large retailers.

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If you open image in new table by right clicking, it should be clear!

Mundy Handcraft is a manufacturer of picture frames for large retailers. Every picture frame passes through two departments: the assembly department and the finishing department. This problem focuses on the assembly department. The process-costing system at Mundy has a single direct-cost category (direct materials) and a single indirect-cost category (conversion costs). Direct materials are added when the assembly department process is 10% complete. Conversion costs are added evenly during the assembly department's process. Mundy uses the weighted average method of process costing. Consider the following data for the assembly department in April 2017 (Click the icon to view the data.) Read the requirements Requirement 1. Summarize total assembly department costs for April 2017, and assign total costs to units completed (and transferred out) and to units in ending work in process. Begin by calculating the physical units and equivalent units Data table Equivalent Units Direct Conversion Physical Units Flow of Production Materials Costs Work in process, beginning Started during current period Physical Units Direct Conversion (Frames) Materials Costs Work in process, April 18 90 $1,155 $1,307 Started during April 2017 515 Completed during April 2017 465 Work in process, April 30 140 Total costs added during April 2017 $16.995 $10.189 Degree of completion: direct materials, 100%; conversion costs, 40%. Degree of completion: direct materials, 100%; conversion costs, 10%. To account for Completed and transferred out during current period Work in process, ending Accounted for Equivalent units of work done to date Print Done Now summarize the total costs to account for. Total Direct Conversion Costs Production Costs Materials Total costs to account for Next calculate cost per equivalent unit for direct materials and conversion costs. Conversion Direct Materials Costs Divide by Cost per equivalent unit Finally assign total costs to units completed and transferred out) and to units in ending work in process. Direct Total Production Costs Conversion Costs Materials Completed and transferred out Work in process, ending Total costs accounted for Requirement 2. What issues should a manager focus on when reviewing the equivalent units calculation? degree of completion resulting in V managers should ask supervisors specific questions about the process they followed. To show better performance, a department supervisor might report a Top management should always emphasize cost per equivalent unit and This emphasis drives operating income. In other words, estimates of degree of completion can help throughout the organization

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