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				$45,200
Direct materials		$22,000
Conversion costs		$13,800		$16,800
Current production:
Units started		25,000		?
Units transferred out		30,000		35,000
Costs:
Transferred in				?
Direct materials		$56,250		$39,550
Conversion costs		$103,500		$136,500
Percentage of completion:
Beginning inventory		40%		50%
Ending inventory		80		50

Required:

1. Using the weighted average method, prepare the following for the Molding Department:

a. A physical flow schedule

Molding Department, Physical flow schedule:
Units to account for:
Started and completedUnits, beginning work in processUnits, ending work in process	- Select -
Started and completedUnits, ending work in processUnits started in February	- Select -
Total units to account for	fill in the blank 11825d057fc702c_5
Units accounted for:
Units completed and transferred out:
Started and completedUnits, beginning work in processUnits started in February	- Select -
From beginning work in processTotal units accounted forUnits completedUnits transferred out	- Select -
Units, beginning work in processUnits, ending work in processUnits started in February	- Select -
Total units accounted for	fill in the blank 11825d057fc702c_12

Feedback

a. The physical flow schedule traces the units in process regardless of their stage of completion.

b. An equivalent units calculation

	Total equivalent units
Direct Materials	fill in the blank 87db5b017fd0fbc_1
Conversion Costs	fill in the blank 87db5b017fd0fbc_2

c. Calculation of unit costs. Round your intermediate computations and final answer to four decimal places. $fill in the blank 87db5b017fd0fbc_3 per unit

d. Calculate the cost of ending work in process and cost of goods transferred out. Round your answers to the nearest dollar. Cost of ending work in process: $fill in the blank 87db5b017fd0fbc_4 Cost of goods transferred out: $fill in the blank 87db5b017fd0fbc_5

e. A cost reconciliation. When required, round your answers to the nearest dollar.

Costs to account for:
Beginning work in process	$fill in the blank 87db5b017fd0fbc_6
Costs incurred	fill in the blank 87db5b017fd0fbc_7
Total costs to account for	$fill in the blank 87db5b017fd0fbc_8

Costs accounted for:
Transferred out	$fill in the blank 87db5b017fd0fbc_9
Ending work in process	fill in the blank 87db5b017fd0fbc_10
Total costs accounted for	$fill in the blank 87db5b017fd0fbc_11

Feedback

b. To calculate equivalent units, weighted average counts prior-period output in BWIP as belonging to the current period. All units are output in the current period.

c. Unit cost = Unit direct materials cost + Unit conversion costs

d. Costing out ending work in process is done by computing the cost of each input and then adding to obtain the total. The valuation of cost of goods transferred out is simplified as it is the total unit cost multiplied by the units completed.

e. Reconciliation is making sure that the costs assigned to goods or services completed and EWIP are equal to the costs to account for.

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. When required, round your answers to the nearest dollar.

a.	Conversion Costs-ControlFinished GoodsMaterials InventoryWork in Process-MoldingWork in Process-Molding	Work in Process-Molding
	Accounts PayableCashMaterials InventoryOverhead ControlWork in Process-AssemblyMaterials Inventory		Materials Inventory
b.	CashConversion Costs-ControlFinished GoodsMaterials InventoryWork in Process-MoldingWork in Process-Molding	Work in Process-Molding
	Accounts PayableCashConversion Costs-ControlOverhead ControlWork in Process-AssemblyConversion Costs-Control		Conversion Costs-Control
c.	CashConversion Costs-ControlFinished GoodsMaterials InventoryWork in Process-AssemblyWork in Process-Assembly	Work in Process-Assembly
	CashConversion Costs-ControlMaterials InventoryWork in Process-AssemblyWork in Process-MoldingWork in Process-Molding		Work in Process-Molding

Feedback

2. An example of journal entries showing the flow of costs is illustrated above Exhibit 6.5.

3. Repeat Requirements 1 and 2 for the Assembly Department.

a. A physical flow schedule:

Assembly Department, Physical flow schedule:
Units accounted for:
Started and completedUnits, beginning work in processUnits, ending work in processUnits, beginning work in process	Units, beginning work in process
Started and completedUnits, ending work in processUnits started in February (transferred in)	- Select -
Total units to account for	fill in the blank fd37f9042fa7fd3_5
Units accounted for:
Units completed and transferred out:
Started and completedUnits, beginning work in processUnits started in February (transferred in)	- Select -
From beginning work in processTotal units accounted forUnits completedUnits transferred out	- Select -
Units, beginning work in processUnits, ending work in processUnits started in February (transferred in)	- Select -
Total units accounted for	fill in the blank fd37f9042fa7fd3_12

Feedback

3. Read the problem carefully. There are some differences in how the material additions are accounted for.

b. An equivalent units calculation

	Total Equivalent Units
Direct Materials	fill in the blank e26455f4ef93049_1
Conversion Costs	fill in the blank e26455f4ef93049_2
Transferred In	fill in the blank e26455f4ef93049_3

c. Calculate the total unit costs. Round your intermediate computations and final answer to four decimal places. $fill in the blank e26455f4ef93049_4 per unit

d. Calculate the cost of ending work in process and cost of goods transferred out. Round your answers to the nearest dollar. Cost of ending work in process: $fill in the blank e26455f4ef93049_5 Cost of goods transferred out: $fill in the blank e26455f4ef93049_6

e. A cost reconciliation. If required, round your answers to the nearest dollar.

Costs to account for:
Beginning work in process	$fill in the blank e26455f4ef93049_7
Costs incurred	fill in the blank e26455f4ef93049_8
Total costs to account for	$fill in the blank e26455f4ef93049_9

Costs accounted for:
Transferred out	$fill in the blank e26455f4ef93049_10
Ending work in process	fill in the blank e26455f4ef93049_11
Total costs accounted for	$fill in the blank e26455f4ef93049_12

Note: Cost reconciliation totals differ by $1 due to rounding error.

Feedback

3. Read the problem carefully. There are some differences in how the material additions are accounted for.

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.

a.	CashConversion Costs-ControlMaterials InventoryWork in Process-AssemblyWork in Process-Molding	- Select -
	Accounts PayableCashFinished GoodsMaterials InventoryWork in Process-Molding		- Select -
b.	CashConversion Costs-ControlMaterials InventoryWork in Process-AssemblyWork in Process-Molding	- Select -
	CashConversion Costs-ControlCost of Goods SoldFinished GoodsWork in Process-Molding		- Select -
c.	Accounts PayableCashConversion Costs-ControlFinished GoodsMaterials Inventory	- Select -
	Accounts PayableCashFinished GoodsWork in Process-AssemblyWork in Process-Molding		- Select -

Requirement 3 all parts needed