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		$56,750		$40,250
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

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. $ ___________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. When required, round your answers to the nearest dollar.

Costs to account for:
Beginning work in process	$35,8000
Costs incurred	_________
Total costs to account for	$________

Costs accounted for:
Transferred out	$________
Ending work in process	_________
Total costs accounted for	$________

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	_________
	Materials Inventory	_________
b.	Work in Process-Molding	103,500
	Conversion Costs-Control	103.500
c.	__________________	_________
	___________________	__________

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 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
Total units accounted for	38,000

Feedback

b. An equivalent units calculation

	Total Equivalent Units
Direct Materials	___________________
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. $ __________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.	Work in Process-Assembly	_______
	Materials Inventory	__________
b.	Work in Process-Assembly	________
	____________________	__________
c.	____________________	___________
	____________________	__________