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 Units transferred out 30,000 35,000 Costs: Transferred in Direct materials $56,250 $39,550 Conversion costs $ 103,500 $ 136,500 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 Molding Department, Physical flow schedule: Units to account for: Units, beginning work in process 10,000 Units started in February 25,000 Total units to account for 35,000 Units accounted for: Units completed and transferred out: Started and completed 20,000 From beginning work in process 10.000 Units, ending work in process 5,000 Total units accounted for 35,000 Feedback Check My Work a. The physical flow schedule traces the units in process regardless of their stage of completion. 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. $ 5.6857 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: 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 Costs accounted for: Transferred out $ 170,571 Ending work in process 24,979 Total costs accounted for $195,550 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. c. Feedback Check My Work 2. An example of journal entries showing the flow of costs is illustrated above Exhibit 6.5. 3. Repeat Requirements 1 and 2 for the Assembly Department. a. A physical flow schedule: Assembly Department, Physical flow schedule: Units accounted for: 110 Total units to account for Units accounted for: Units completed and transferred out: Total units accounted for 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 by $1 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. a b. c