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

10,000 25,000 35,000 Units to account for: Units, beginning work in process Units started in February Total units to account for Units accounted for: Units completed and transferred out: Started and completed From beginning work in process Units, ending work in process Total units accounted for 20,000 10,000 5,000 35,000 Feedback b. An equivalent units calculation Total equivalent units Direct Materials 35,000 Conversion Costs 34,000 c. Calculation of unit costs. Round your intermediate computations and final answer to four decimal places. 5.79 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: $25,400 Cost of goods transferred out: 173,700 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 163,300 Total costs to account for 199,100 Costs accounted for: Transferred out 173,700 25,400 Ending work in process Total costs accounted for 199,100 Feedback 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 56,400 Materials Inventory 56,400 106,900 b. Work in Process-Molding Conversion Costs-Control 106,900 173,700 c. Work in Process-Assembly Work in Process-Molding 173,700 Feedback a. A physical flow schedule: 8,000 30,000 38,000 Assembly Department, Physical flow schedule: Units to account for: Units, beginning work in process Units started in February (transferred in) Total units to account for Units accounted for: Units completed and transferred out: Started and completed From beginning work in process Units, ending work in process 27,000 8,000 3,000 Total units accounted for 38,000 Feedback b. An equivalent units calculation Total Equivalent Units Direct Materials Conversion Costs Transferred In 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: $ 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. Feedback 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. b. C. o