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 110,000 units made up of the following:

During April, 510,000 units were transferred in from the Molding Department at a cost of $708,900. The Assembling Department added the following costs:

Assembling finished 410,000 units and transferred them to the Packaging Department.

At April 30, 210,000 units were still in work-in-process inventory. The degree of completion of work-in-process inventory at April 30 was as follows:

Required:

a. Prepare a production cost report using the weighted-average method. (Round "Cost per equivalent unit" to 2 decimal places

KANSAS SUPPLIES
   Assembling Department
Production Cost Report- Weighted Average

Flow of Production Units

   Compute Equivalent Units

DETAILS

$

Amount Degree of Completion Prior department costs transferred in from the Molding Department $ 152,900 100 % Costs added by the Assembling Department Direct materials $ 89,100 100 % Direct labor 37,540 60 % Manufacturing overhead 25,070 50 % $ 151,710 Work in process, April 1 $ 304,610

Explanation / Answer

(A) - Statement of Equivalent Units

168000

(210000*80%)

147000

(210000*70%)

73500

(210000*35%)

(B) - Details

$2.10195

($861800/410000)

$0.81

($468180/578000)

$0.42

($233940/557000)

$0.3

($145050/483500)

$861800

($2.10195*410000)

$332100

($0.81*410000)

$172200

($0.42*410000)

$123000

($0.3*410000)

$136080

($0.81*168000)

$61740

($0.42*147000)

$22050

($0.3*73500)

Particulars Prior Department cost Material Labour Manufacturing overhead Units Accounted for Units Completed and Transferred out From Beginning Inventory 110000 Started and Completed Currently 300000 Total Transferred out 410000 410000 410000 410000 410000 Units in ending WIP inventory 210000 0

168000

(210000*80%)

147000

(210000*70%)

73500

(210000*35%)

Total Units Accounted for 620000 410000 578000 557000 483500

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