Kansas Supplies is a manufacturer of plastic parts that uses the weighted-averag

Question

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: Degree of Amount Completion Prior department costs transferred in from the Molding Department_S 192,000 100% Costs added by the Assembling Department Direct materials Direct labor Manufacturing overhead S 120,000 43,200 100% 60% 50% S 190,800 S 382,800 Work in process, April 1 During 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 Direct labor Manufacturing overhead Total costs added $ 576,000 216,000 113.400 $ 905,400 Assembling 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 materials Direct labor Manufacturing overhead 90% 70 35

Explanation / Answer

Flow of production units: Units to be accounted for: Beginning WIP inventory 75000 Units started this year 375000 Total units to be accounted for: 450000 Prior cost Material labour OH Units Accounted for: Units completed andn transferred out From beginning Units 75000 Started and Completed Currently 225000 Total Transferred out 300000 300000 300000 300000 Units in ending WIP Inventory 150000 135000 105000 52500 Total Units accounted for 450000 435000 405000 352500 Total Cost Prior cost Material labour OH Cost to be accounted for: Cost in beginning WIP 382800 192000 120000 43200 27600 Currrent period cost 1865400 960000 576000 216000 113400 Total cost to be accountedfor: 2248200 1152000 696000 259200 141000 Cost per Equivalent units: Prior department cost 2.56 Matrial 1.6 labour 0.64 Overheads 0.4 Cost accounted for: Cost assigned to finished goodds: Prior department cost 768000 768000 material 480000 480000 labour 192000 192000 OH 120000 120000 Total cost of units transferred out 1560000 Cost asigned to Ending WIP Prior department cost 384000 384000 material 216000 216000 labour 67200 67200 OH 21000 21000 Total Cost of Ending Wip 688200 Total cost accounted for: 2248200 11520000 696000 259200 141000

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