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				$45,300
Direct materials		$22,000
Conversion costs		$13,800		$16,800
Current production:
Units started		25,000		?
Units transferred out		30,000		35,000
Costs:
Transferred in				?
Direct materials		$56,750		$40,250
Conversion costs		$106,900		$136,500
Percentage of completion:
Beginning inventory		40%		50%
Ending inventory		80		50

Required:

Question Content Area

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:	blank
Started and completedUnits, beginning work in processUnits, ending work in processUnits, beginning work in process	Units, beginning work in process
Started and completedUnits, ending work in processUnits started in FebruaryUnits started in February	Units started in February
Total units to account for	fill in the blank 945b8b00f06af99_5
Units accounted for:	blank
Units completed and transferred out:
Started and completedUnits, beginning work in processUnits started in FebruaryStarted and completed	Started and completed
From beginning work in processTotal units accounted forUnits completedUnits transferred outFrom beginning work in process	From beginning work in process
Units, beginning work in processUnits, ending work in processUnits started in FebruaryUnits, ending work in process	Units, ending work in process
Total units accounted for	fill in the blank 945b8b00f06af99_12

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b. An equivalent units calculation

	Total equivalent units
Direct Materials	fill in the blank 8730f9046fd5fda_1
Conversion Costs	fill in the blank 8730f9046fd5fda_2

c. Calculation of unit costs. Round your intermediate computations and final answer to four decimal places. $fill in the blank 8730f9046fd5fda_3 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: $fill in the blank 8730f9046fd5fda_4 Cost of goods transferred out: $fill in the blank 8730f9046fd5fda_5

e. A cost reconciliation. When required, round your answers to the nearest dollar.

Costs to account for:
Beginning work in process	$fill in the blank 8730f9046fd5fda_6
Costs incurred	fill in the blank 8730f9046fd5fda_7
Total costs to account for	$fill in the blank 8730f9046fd5fda_8

Costs accounted for:
Transferred out	$fill in the blank 8730f9046fd5fda_9
Ending work in process	fill in the blank 8730f9046fd5fda_10
Total costs accounted for	$fill in the blank 8730f9046fd5fda_11

Question Content Area

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.	Conversion Costs-ControlFinished GoodsMaterials InventoryWork in Process-MoldingWork in Process-Molding	Work in Process-Molding
	Accounts PayableCashMaterials InventoryOverhead ControlWork in Process-AssemblyMaterials Inventory		Materials Inventory
b.	CashConversion Costs-ControlFinished GoodsMaterials InventoryWork in Process-MoldingWork in Process-Molding	Work in Process-Molding
	Accounts PayableCashConversion Costs-ControlOverhead ControlWork in Process-AssemblyConversion Costs-Control		Conversion Costs-Control
c.	CashConversion Costs-ControlFinished GoodsMaterials InventoryWork in Process-AssemblyWork in Process-Assembly	Work in Process-Assembly
	CashConversion Costs-ControlMaterials InventoryWork in Process-AssemblyWork in Process-MoldingWork in Process-Molding		Work in Process-Molding

Question Content Area

3. Repeat Requirements 1 and 2 for the Assembly Department.

a. A physical flow schedule:

Assembly Department, Physical flow schedule:
Units to account for:	blank
Started and completedUnits, beginning work in processUnits, ending work in processUnits, beginning work in process	Units, beginning work in process
Started and completedUnits, ending work in processUnits started in February (transferred in)Units started in February (transferred in)	Units started in February (transferred in)
Total units to account for	fill in the blank af2ea7059f94fdd_5
Units accounted for:	blank
Units completed and transferred out:
Started and completedUnits, beginning work in processUnits started in February (transferred in)Started and completed	Started and completed
From beginning work in processTotal units accounted forUnits completedUnits transferred outFrom beginning work in process	From beginning work in process
Units, beginning work in processUnits, ending work in processUnits started in February (transferred in)Units, ending work in process	Units, ending work in process
Total units accounted for	fill in the blank af2ea7059f94fdd_12

Question Content Area

b. An equivalent units calculation

	Total Equivalent Units
Direct Materials	fill in the blank 0184ed0aeffcfff_1
Conversion Costs	fill in the blank 0184ed0aeffcfff_2
Transferred In	fill in the blank 0184ed0aeffcfff_3

c. Calculate the total unit costs. Round your intermediate computations and final answer to four decimal places. $fill in the blank 0184ed0aeffcfff_4 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: $fill in the blank 0184ed0aeffcfff_5 Cost of goods transferred out: $fill in the blank 0184ed0aeffcfff_6

e. A cost reconciliation. If required, round your answers to the nearest dollar.

Costs to account for:
Beginning work in process	$fill in the blank 0184ed0aeffcfff_7
Costs incurred	fill in the blank 0184ed0aeffcfff_8
Total costs to account for	$fill in the blank 0184ed0aeffcfff_9

Costs accounted for:
Transferred out	$fill in the blank 0184ed0aeffcfff_10
Ending work in process	fill in the blank 0184ed0aeffcfff_11
Total costs accounted for	$fill in the blank 0184ed0aeffcfff_12

Note: Cost reconciliation totals differ due to rounding error.

Question Content Area

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.

a.	CashConversion Costs-ControlMaterials InventoryWork in Process-AssemblyWork in Process-Molding	- Select -
	Accounts PayableCashFinished GoodsMaterials InventoryWork in Process-Molding		- Select -
b.	CashConversion Costs-ControlMaterials InventoryWork in Process-AssemblyWork in Process-Molding	- Select -
	CashConversion Costs-ControlCost of Goods SoldFinished GoodsWork in Process-Molding		- Select -
c.	Accounts PayableCashConversion Costs-ControlFinished GoodsMaterials Inventory	- Select -
	Accounts PayableCashFinished GoodsWork in Process-AssemblyWork in Process-Molding		- Select -