Question:
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
|
$16,800
|
|
Current production:
|
|
|
|
Units started
|
25,000
|
?
|
|
Units transferred out
|
30,000
|
35,000
|
|
Costs:
|
|
|
|
Transferred in
|
-
|
?
|
|
Direct materials
|
$56,250
|
$39,550
|
|
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
b. An equivalent units calculation
c. Calculation of unit costs
d. Cost of ending work in process and cost of goods transferred out e. A cost reconciliation
2. Prepare journal entries that show the flow of manufacturing costs for the molding department.
3. Repeat Requirements 1 and 2 for the assembly department.