Problem - Kansas Supplies is a manufacturer of plastic parts that uses the weighted-average process costing method to account for costs of production. It produces parts in three separate departments: Molding, Assembling, and Packaging. The following information was obtained for the Assembling Department for the month of April.
Work in process on April 1 had 75,000 units made up of the following:
Amount Degree of Completion Prior department costs transferred in from the Molding Department $192,000100% Costs added by the Assembling Department Direct materials$120,000100%Direct labor43,20060%Manufacturing overhead27,60050%$190,800Work in process, April 1$382,800During April, 375,000 units were transferred in from the Molding Department at a cost of $960,000. The Assembling Department added the following costs:
Direct materials$576,000Direct labor216,000Manufacturing overhead113,400Total costs added$905,400Assembling finished 300,000 units and transferred them to the Packaging Department.
At April 30, 150,000 units were still in work-in-process inventory. The degree of completion of work-in-process inventory at April 30 was as follows:
Direct materials90%Direct labor70Manufacturing overhead35
Required:
a. Prepare a production cost report using the weighted-average method.