Problem - Recently, Walters Company expanded its market by becoming an original equipment supplier to Jeep Wrangler. Walters produces factory upgraded speakers specifically for Jeep. The Kicker components and speaker cabinets are outsourced with assembly remaining in-house. Walters assembles the product by placing the speakers and other components in cabinets that define an audio package upgrade and that can be placed into any Jeep, producing the desired factory-installed appearance. Speaker cabinets and associated Kicker components are added at the beginning of the assembly process.
Assume that Walters uses the weighted average method to cost out the audio package. The following are cost and production data for the assembly process for April:
Production
Units in process, 4/1, 60% complete 60,000
Units completed and transferred out 150,000
Units in process, 4/30, 20% complete 30,000
Costs:
Work-in-process, 4/1:
Cabinets $ 1,200,000
Kicker components 12,600,000
Conversion costs 5,400,000
Costs added during April:
Cabinets $ 2,400,000
Kicker components 25,200,000
Conversion costs 8,640,000
Prepare a Cost of Production Report for April.