Problem:
Porter Handcraft is a manufacturer of picture frames for large retailers. Every picture passes through two departments: the Assembly Department and the Finishing Department. This problem focuses on the Assembly Department. The process-costing system at Porter has a single direct-cost category (direct materials) and a single indirect-cost category (conversion costs). Direct materials are added when the Assembly Department process is 10% complete. Conversion costs are added evenly during the Assembly Department process is 10% complete. Conversion costs are added evenly during the Assembly Department's process.
Porter uses the weighted-average method of process accounting. Consider the following data for the Assembly Department in April 2009:
|
|
|
|
|
Physical Units |
Direct Materials |
Conversion Costs |
| Work in process, April 1 |
|
|
75 |
$ 1,775.00 |
$ 135.00 |
| Started during April 2009 |
|
|
550 |
|
|
| Completed during April 2009 |
|
|
500 |
|
|
| Work in process,April 30 |
|
|
125 |
|
|
| Total costs added during April 2009 |
|
|
$ 17,600.00 |
$ 10,890.00 |
Degree of completion; direct materials 100%; conversion costs, 40%
Degree of completion; direct materials 100%; conversion costs, 20
1) Summarize total Assembly Department costs for April 2009, and assign total costs to units completed (and transferred out) and to units in ending work in process.