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Manama Company manufactures car seats. Each car passes through the assembly department and the testing department. This problem focuses on the assembly depent. The process-costing
Manama Company manufactures car seats. Each car passes through the assembly department and the testing department. This problem focuses on the assembly depent. The process-costing system at Manama Company has a single direct-cost category (direct materials) and a sindirect-cost category (conversion costs). Direct materials are added at the beginning of the process. Conversion are added evenly during the process. When the assembly department finishes work on each car seat, it is immedi transferred to testing. Manama Company uses the weighted-average metho process costing. Data for the assembly department for October 2021 are as follows: QUESTION 1 Manama Company manufactures car seats. Each car seat passes through the assembly depart single indirect-cost category (conversion costs). Direct materials are added at the begim of Manama Company uses the weighted-average method of process costing, Data for the membly Conve Physical (Car Seats) Units Direct Materials Cast Work in process, October 1 5,000 $1,250,000 SA Started during October 2021 20,000 Completed during October 2021 22,500 Work in process, October 31b 2,500 $4,500,000 Total costs added during October 2021 *Degree of completion: direct materials 100%; conversion costs, 60% "Degree of completion: direct materials,100%; conversion costs, 70% Required: pare a production cost worksheet with supporting schedules (e for all October 2021 transactions affectin sex pasons the ough the verbly depe post). Direct in meals are ackled at the beginning of the proces erage method of process cosing Data for donably depot for October 2021 we as follows Physical (Car Seats) Units Work in process, October 1" Started during October 2021 Completed during October 2021 Work in process, October 31b 5,000 20,000 22,500 2,500 Total costs added during October 2021 Direct Materials Conversion Costs $1,250,000 $402,750 $4,500,000 $2,337,500 "Degree of completion: direct materials 100%; conversion costs, 60%. "Degree of completion: direct materials, 100%; conversion costs, 70%. equired: 1. Prepare a production cost worksheet with supporting schedules (i.e. showing all the five steps) using Prepare the journal entries for all October 2021 transactions affecting Work in Process-Assembly. toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac)
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