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. Prepare 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. Prepare 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 $