Question
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
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:
- 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%
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* T-Account WIP Molding here: ? 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.
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