Weighted Average Method, Journal Entries Muskoge Company uses a process-costing system. The company manufactures a product that is processed in two departments: Molding and Assembly In the Molding Department, direct materials are added at the beginning of the process; in the Assembly Department, additional direct materials are added at the end of the process. In both departments, conversion costs are incurred uniformly throughout the process. As work is completed, it is transferred out. The following table summarizes the production activity and costs for February: Molding Assembly Beginning inventories: Physical units 10,000 8,000 Costs: Transferred in - $45,200 Direct materials $22,000 Conversion costs $13,800 $16,800 Current production: Units started 25,000 7 Units transferred out 30,000 35,000 Costs: Transferred in ? Direct materials $56,750 $39,550 Conversion costs $103,500 $136,500 Percentage of completion: Beginning inventory Ending inventory 40% 50% 80 50 Required: 1. Using the weighted average method, prepare the following for the Molding Department: a. A physical flow schedule Molding Department, Physical flow schedule: Units to account for: Units, beginning work in process Units started in February 10,000 25,000 Total units to account for 35,000 Units accounted for: Units completed and transferred out: Units, beginning work in process 10,000 Units completed 20,000 Units, ending work in process 5,000 Total units accounted for 35,000 b. An equivalent units calculation Total equivalent units Direct Materials Conversion Costs 35,000 34,000 c. Calculation of unit costs. Round your intermediate computations and final answer to four decimal places. 5.6857 per unit d. Calculate the cost of ending work in process and cost of goods transferred out. Round your answers to the nearest de Cost of ending work in process: $24,979 Cost of goods transferred out: $170,571 e. A cost reconciliation. When required, round your answers to the nearest dollar. Costs to account for: Beginning work in process 35,800 Costs incurred 159,750 Total costs to account for $195,550 Beginning work in process 35,800 Costs incurred 159,750 Total costs to account for 195,550 Costs accounted for: Transferred out $170,571 24,979 195,550 Ending work in process Total costs accounted for 2. Prepare journal entries that show the flow of manufacturing costs for the Molding Department. (a) Materials are added at the beginning of the process, (b) conversion costs are recorded, and (c) units are transferred to the Assembly Department. When required, round your answers to the nearest dollar. a. Work in Process-Molding Overhead Control 195,550 195,550 3. Repeat Requirements 1 and 2 for the Assembly Department. a. A physical flow schedule: Assembly Department, Physical flow schedule: Units to account for: Total units to account for Units accounted for: Units completed and transferred out: 000 000 Assembly Department, Physical flow schedule: Units to account for: Total units to account for Units accounted for: Units completed and transferred out: Total units accounted for 000000 b. An equivalent units calculation Direct Materials Conversion Costs Transferred In Total Equivalent Units c. Calculate the total unit costs. Round your intermediate computations and final answer to four decimal places. per unit d. Calculate the cost of ending work in process and cost of goods transferred out. Round your answers to the nearest dollar. Cost of ending work in process: S Cost of goods transferred out: $ e. A cost reconciliation. If required, round your answers to the nearest dollar. Costs to account for: Beginning work in process Costs incurred Total costs to account for Costs accounted for: Transferred out Ending work in process > twin your answers to the nearest dollar. Cost of ending work in process: $ Cost of goods transferred out: $ e. A cost reconciliation. If required, round your answers to the nearest dollar. Costs to account for: Beginning work in process Costs incurred Total costs to account for Costs accounted for: Transferred out Ending work in process Total costs accounted for Note: Cost reconciliation totals differ due to rounding error. Prepare journal entries that show the flow of manufacturing costs for the Assembly Department. (a) Materials are added at the end of the process, (b) conversion costs are recorded, and (c) the units are transferred to Finished Goods. 000 0 0 0 Previous Next