Muskoge Company uses a process-costing system. The company manufactures a produc
ID: 2514171 • Letter: M
Question
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: Beginning inventories for Molding; Assembly (first number for molding second number for assembly) 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. Round to four decimal places. d. Cost of ending work in process and cost of goods transferred out e. A cost reconciliation
Explanation / Answer
a)Physical Flow Schedule
b)EQUIVALENT UNITS CALCULATION
c)CALCULATION OF UNIT COSTS
TOTAL COST=2.2357+3.45=5.6857
d.)cost of ending work in process & cost of goods transferred out
COST OF ENDING WORK IN PROGRESS=5000*2.2357+4000*3.45=24,979
COST OF GOOD TRANSFERRED OUT=30,000*5.6857=170,571
e)Reconciliation
MOLDING UNITS BEGINNING WORK IN PROGRESS 10,000 UNITS STARTED IN FEBURARY 25,000 TOTAL UNIITS TO ACCOUNT FOR 35,000 UNITS COMPLETED AND TRANSFERRED OUT BEGINNING WORK IN PROGRESS 10,000 UNITS STARTED AND COMPLETED 20,000 ENDING WORK IN PROGRESS 5,000 TOTAL UNITS ACCOUNTED FOR 35,000Related Questions
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