The Carlberg Company has two manufacturing departments, assembly and painting. T

Question

The Carlberg Company has two manufacturing departments, assembly and painting. The assembly department started 0,800 units during November. The following production activity unit and cost information refers to the assembly department's November production activities. Percent of Direct Materials Added Percent Conversion Units 2,400 9,400 3,800 Beginning work in process Units transferred out 1ee% 95% 100% 35% Ending work in process Beginning work in process 52,966 (includes $2,479 for direct materials and $487 for conversion) Costs added during the month Di Conversion s 23,541 s 26,338

Explanation / Answer

Equivalent unit of material = 9400+(3800*95%) = 13010

Equivalent unit of conversionn = 9400+(3800*35%) = 10730

Cost per equivalent unit of material = (2479+23541)/13010 = 2

Cost per equivalent unit fo conversion = (487+26338)/10730 = 2.5

Cost of unit transferred out = (2+2.5)*9400 = $42300

Journal entry :

Date account and explanation debit credit Work in process-Painting department 42300    Work in process-Assembly department 42300 (To record cost transferred)

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