Steps in Preparing a Production Report

Recently, Stillwater Designs expanded its market by becoming an original equipment supplier to Jeep Wrangler. Stillwater Designs produces factory upgraded speakers specifically for Jeep Wrangler. The Kicker components and speaker cabinets are outsourced with assembly remaining in house. Stillwater Designs assembles the product by placing the speakers and other components in cabinets that define an audio package upgrade and that can be placed into the Jeep Wrangler, producing the desired factory-installed appearance. Speaker cabinets and associated Kicker components are added at the beginning of the assembly process.

Assume that Stillwater Designs uses the weighted average method to cost out the audio package. The following are cost and production data for the assembly process for April:

Production:Units in process, April 1, 60% complete60,000Units completed and transferred out150,000Units in process, April 30, 20% complete30,000Costs:WIP, April 1:Cabinets$1,200,000Kicker components12,600,000Conversion costs5,400,000Costs added during April:Cabinets$2,400,000Kicker components25,200,000Conversion costs8,640,000

Required:

1.Create a physical flow analysis for the assembly department for the month of April.

Assembly DepartmentPhysical Flow AnalysisFor the Month of AprilUnits to account for:Units in beginning work in processUnits started during the periodTotal units to account forUnits accounted for:Units completed and transferred out:Started and completedFrom beginning work in processUnits in ending work in processTotal units accounted for

2.Calculate equivalent units of production for the assembly department for the month of April.

Cabinetsequivalent unitsComponentsequivalent unitsConversionequivalent units

3.Calculate unit cost for the assembly department for the month of April.

Per UnitCabinets$Components$Conversion$Total$

4.Calculate the cost of units transferred out and the cost of EWIP inventory.

Cost of units transferred out$Cost of ending work in process$

5.Create a cost reconciliation for the assembly department for the month of April.

Assembly DepartmentCost ReconciliationFor the Month of AprilCosts to account for:Beginning work in process$Incurred during AprilTotal costs to account for$Costs accounted for:Goods transferred out$Goods in ending work in processTotal costs accounted for$