Question
Toddler Toys produces toy construction vehicles for young children. Plastic pieces are moulded in the plastics department. These pieces are transferred to the assembly department
Toddler Toys produces toy construction vehicles for young children. Plastic pieces are moulded in the plastics department. These pieces are transferred to the assembly department where direct materials are added after some assembly has been done. For example, plastic pieces of road graders are put together, then the blades and wheel assemblies are added, and finally some details are painted on the sides and back. The direct materials are added in the assembly department when the process is 75% complete. Beginning inventory is 80% complete, and ending inventory is 25% complete. Following are data for August:
Beginning inventory costs for the assembly department: |
|
Transferred in | $4,000 |
Direct materials | 2,000 |
Conversion costs | 1,600 |
Total cost | $7,600 |
Costs incurred in the assembly department during current period: |
|
Transferred in | $36,000 |
Direct materials | 18,000 |
Conversion costs | 16,000 |
Total cost | $70,000 |
Physical units in the assembly department: |
|
Units in beginning inventory | 2,000 |
Units started this month | 18,000 |
Total units completed and transferred out | 14,800 |
Normal spoilage | 1,000 (100% complete) |
Abnormal spoilage | 1,000 (100% complete) |
Prepare a cost report using the weighted average method.
Units | Costs | ||||||
---|---|---|---|---|---|---|---|
Total units completed and transferred out | $ | ||||||
Normal spoilage | |||||||
Total transferred out | |||||||
Abnormal spoilage | |||||||
Ending WIP: | |||||||
Transferred-in | |||||||
Direct materials | |||||||
Conversion costs | |||||||
Total ending WIP cost | |||||||
Total Accounted For | $ |
B. Write out the journal entries for this period's work.
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