Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The Assembly Department of ZAP Motors began September with no work in process inventory. During the month, production that cost $37,243 (direct materials, $10,123, and
The Assembly Department of ZAP Motors began September
with no work in process inventory. During the month, production that cost $37,243 (direct materials, $10,123, and conversion costs, $27,120) was started on 24,000 units.
ZAP completed and transferred to the Testing Department a total of 17,000
units. The ending work in process inventory was 30% complete as to direct materials and 80% complete as to conversion work.
Requirement 1. Compute the equivalent units for direct materials and conversion costs.
Assembly Department | |||
Equivalent Unit Computation | |||
Month Ended September 30 | |||
| Flow of | Equivalent Units | |
| Physical | Direct | Conversion |
Flow of Production | Units | Materials | Costs |
Units accounted for: | |||
| | | |
| | | |
| | | |
Total equivalent units | | | |
Requirement 2. Compute the cost per equivalent unit. (For entries with a $0 balance, make sure to enter "0" in the appropriate column. Enter the cost per equivalent unit to two decimal places.)
Assembly Department | ||
Cost per Equivalent Unit | ||
Month Ended September 30 | ||
| Direct | Conversion |
| Materials | Costs |
| | |
| | |
| | |
| | |
Cost per equivalent unit | | |
Requirement 3. Assign the costs to units completed and transferred out and ending work in process inventory. (Enter quantities first, then the cost per equivalent unit amounts in the same order as calculated in the preceding step.)
Assembly Department | ||||
Month Ended September 30 | ||||
Assigning Costs | ||||
| | Direct | Conversion | |
| | Materials | Costs | Total |
| Completed and transferred out: | |||
| | | | |
| | | ||
| | | | |
| Ending work in process: | | | |
| | | | |
| | | | |
| | | | |
| Total costs accounted for | | | |
Requirement 4. Record the journal entry for the costs transferred out of the Assembly Department to the Testing Department. (Record debits first, then credits. Exclude explanations from any journal entries.)
Journal Entry | ||||
Date | Accounts | Debit | Credit | |
| | | | |
| | | | |
| | | | |
| | | | |
Requirement 5. Post all of the transactions in the "Work in Process
Inventorylong dashAssembly"
T-account. What is the ending balance? (For entries with a $0 balance, make sure to enter "0" in the appropriate column.)
Work in Process InventoryAssembly | |||
| | | |
| | | |
| | | |
| | | |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started