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% complete 60,000

Units completed and transferred out 150,000

Units in process, April 30, 20% complete 30,000

Costs:

WIP, April 1:

Cabinets $1,200,000

Kicker components 12,600,000

Conversion costs 5,400,000

Costs added during April:

Cabinets $2,400,000

Kicker components 25,200,000

Conversion costs 8,640,000

Required:

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

Assembly Department

Physical Flow Analysis

For the Month of April

Units to account for:

Units in beginning work in process _________

Units started during the period _________

Total units to account for _________

Units accounted for:

Units completed and transferred out:

Started and completed __________

From beginning work in process __________ ____________

Units in ending work in process ____________

Total units accounted for ____________

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

Cabinets ____________equivalent units

Components ____________equivalent units

Conversion ____________equivalent units

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

Per Unit

__________________________________________________________

Cabinets $________

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.Explain a cost reconciliation for the assembly department for the month of April.

Assembly Department

Cost Reconciliation

For the Month of April

Costs to account for:

Beginning work in process $_________

Incurred during April _________

Total costs to account for $__________

Costs accounted for:

Goods transferred out $_________

Goods in ending work in process _________

Total costs accounted for $_________