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		$20,450
Current production:
Units started		25,000		?
Units transferred out		30,000		35,000
Costs:
Transferred in				?
Direct materials		$56,400		$39,550
Conversion costs		$106,900		$140,150
Percentage of completion:
Beginning inventory		40%		50%
Ending inventory		80		50

Required:

1. Using the weighted average method, prepare the following for the Molding Department:

a. A physical flow schedule

c. Calculation of unit costs. Round your intermediate computations and final answer to four decimal places. 5.7 X 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: $ 159,750 x Cost of goods transferred out: $ 170,500 x 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 x Total costs to account for 195,550 x Costs accounted for: Transferred out 114,000 x Ending work in process 20,700 x Total costs accounted for 195,550 X 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. b. Feedback 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: Total units accounted for