Weighted-average method. Stable Tables Inc. (STI) is a manufacturer of plastic picnic tables. The tables are distributed to large retailers where they are sold at a competitive price. Every table passes through two departments: the Molding Department and the Trimming Department. This problem focuses on the Molding Department. The process-costing system at SDI has a single direct-cost category (direct materials) and a single indirect-cost category (conversion costs). Direct materials are added when the Molding Department process is 10% complete. Conversion costs are added evenly during the Molding departments process. STI uses the weighted-average method of process costing. Consider the following data for the Molding Department in June: Physical Unit Direct Conversion

(Tables) Materials Costs

Work in Process, June 1[1] 90 $2,295 $188

Started during June 765

Completed during June 675

Work in process June 30[2] ?

Total costs added during June $26,775 $13,852

Required:

1. Prepare a production worksheet for STI. using the weighted average method of process costing. A blank copy of the worksheet is attached to the back of this document. (show calculations): Hints:

• Draw a T account of WIP(units): While production info in units is given here, sometimes it helps to make a T account to illustrate units in beginning inventory, ending inventory, started and completed. (you may get a question where one of the numbers is missing and you need to calculate it)
• Degree of completion: in this question you are given the % completion of direct materials (DM). It did not need to be given. If you know that direct materials are added at the beginning of the process, all units in beginning inventory will have 100% of DM added and all units in ending inventory will have 100% of DM added. (continued..)

[1] Degree of completion: direct materials, 100%; conversion costs, 40%

[2] Degree of completion: direct materials, 100%; conversion costs, 15%

WIP Molding

* T-Account WIP Molding here: ?

2. Prepare all the journal entries that affect the work-in-process, Molding Department account for June. Show the WIP T-accounts for Molding and Trimming.

STEP 1: Units to be accounted for: (Hint: use the WIP (units) from the T account described in the question on page 1 of the assignment)	Quantity Schedule	Production report
Work in process, beginning
Started into production
Total units
		Equivalent units
Units accounted for:		Materials	Conversion
STEP 2: Cost to be accounted for: (Hint: for weighted average, every question must have these four amounts in dollars)	Total Prod. Costs	Total costs
		Materials	Conversion
Total cost (a)
Equivalent units of production (b) (Step 1 above)
Cost per equivalent unit (a / b)
STEP 3: Cost Reconciliation		Equivalent units
		Materials	Conversion
(Hint: for weighted average, = number of units completed x the total cost per equivalent unit)
Total cost of goods completed
(one line each for DM and CC. Use EU from part 1 and cost per EU in part 2)
Total ending work in process
Total cost