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Manama Company manufactures car seats. Each car seat passes through the assembly department and the testing department. This problem focuses on the assembly department. The
Manama Company manufactures car seats. Each car seat passes through the assembly department and the testing department. This problem focuses on the assembly department. The process-costing system at Manama Company has a single direct-cost category (direct materials) and a single indirect-cost category (conversion costs) Direct materials are added at the beginning of the process. Conversion costs are added evenly during the process. When the assembly department finishes work on each car seat, it is immediately transferred to testing. Manama Company uses the weighted-average method of process costing Data for the assembly department for October 2021 are as follows: Physical (Car Seats) Units Direct Work in process, October 1 Started during October 2021 3,000 Materials $1,250,000 Conversion Costs $402,750 20,000 Completed during October 2021 Work in process, October 31 22,500 2.500 Total costs added during October $4,500,000 $2,337,500 2021 "Degree of completion: direct materials 100%; conversion costs, 60%. *Degree of completion: direct materials, 100%; conversion costs, 70%. Required: 1. Prepare a production cost worksheet with supporting schedules (Le, showing all the five steps) using the Weighted average of process Physical (Car Seats) Units Manama Company uses the weighted-average method of process costing. Data for the assembly department for October 2021 are as follows: Conversion Costs Direct Materials Work in process, October 1 5,000 $1,250,000 $402,750 Started during October 20211 20,000 Completed during October 2021- 22.500 Work in process, October 31 2,500 Total costs added during October 2021 $4,500,000 $2,337,500 "Degree of completion: direct materials 100%; conversion costs, 60% "Degree of completion: direct materials, 100%; conversion costs, 70%. Required: 1. Prepare a production cost worksheet with supporting schedules (l.e. showing all the five steps) using the Weighted average of process costing. Prepare the journal entries for all October 2021 transactions affecting Work in Process-Assembly
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