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 $56,400 $40,250 Transferred in ? Direct materials $56,400 $40,250 Conversion costs $103,500 $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 > 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 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 Work in Process-Molding a. 56,400 Materials Inventory 56,400 b. Work in Process-Molding 103,500 Conversion Costs-Control 103,500 a Work in Process-Assembly C. 170,700 Work in Process-Molding 170,700 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: Units, beginning work in process 8,000 Units started in February (transferred in) 30,000 Total units to account for 38,000 Units started in February (transferred in) 30,000 38,000 Total units to account for Units accounted for: Units completed and transferred out: Started and completed 27,000 From beginning work in process 8,000 Units, ending work in process 3,000 38,000 Total units accounted for Feedback ling > b. An equivalent units calculation Total Equivalent Units Direct Materials 35,000 Conversion Costs 36,500 Transferred In 38,000 C. Calculate the total unit costs. Round your intermediate computations and final answer to four decimal places. 9.75 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: $ 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. 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. W C
