Question

Douglas Toys is a manufacturer that uses the weighted-average process costing method to account for costs of production. It produces a plastic toy in three separate departments: Molding, Assembling, and Finishing. The following information was obtained for the Assembling Department for the month of September.

Work in process on September 1 had 114,000 units made up of the following:

		Amount		Degree of Completion
Prior department costs transferred in from the Molding Department	$	163,020		100	%
Costs added by the Assembling Department
Direct materials	$	108,300		100	%
Direct labor		40,688		60	%
Manufacturing overhead		28,374		50	%
	$	177,362
Work in process, September 1	$	340,382

During September, 514,000 units were transferred in from the Molding Department at a cost of $735,020. The Assembling Department added the following costs:

Direct materials	$	467,970
Direct labor		213,022
Manufacturing overhead		138,996
Total costs added	$	819,988

Assembling finished 414,000 units and transferred them to the Finishing Department.

At September 30, 214,000 units were still in work-in-process inventory. The degree of completion of work-in-process inventory at September 30 was as follows:

Direct materials	90	%
Direct labor	70
Manufacturing overhead	30

Required:

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

Answer 1

Assembling department Production cost report For the month ended sept 30
		Equivalent units
Quantities	Physical units	Modeling		materials		direct labour		manufacturing overhead
		units	%	units	%	units	%	units	%
Units to be accounted for
WIP sept 1	1,14,000
Started into production	5,14,000
Total units	6,28,000
Units accounted for
Transferred out	4,14,000	4,14,000	100	4,14,000	100	4,14,000	100	414000	100
WIP Sept 30	2,14,000	2,14,000	100	1,92,600	90	1,49,800	70	64,200	30
Total units	6,28,000	6,28,000		6,06,600		5,63,800		47,82,00

	Equivalent units
Quantities	Modeling	Materials	Direct Labour	Manufacturing Overhead
Unit costs
Beginning WIP	1,63,020.00	1,08,300.00	40,688.00	28,374.00
Cost added during the month	7,35,020.00	4,67,970.00	2,13,022.00	1,38,996.00
Total costs	8,98,040.00	5,76,270.00	2,53,710.00	1,67,370.00
Equivalent units	628000 units	606000 units	563800 units	478200 units
Unit costs	1.43	0.95	0.45	0.35

Cost reconciliation schedule;

Particulars	AMOUNT($)	AMOUNT($)
Costs to be accounted for;
WIP Sept 1		3,40,382.00
Started into production		15,55,008.00
Total costs		18,95,390.00

Costs accounted for;
Transferred out($3.180*414000)		13,16,520.00
WIP Step 30
Molding(214000*1.43)	3,06,020.00
Materials(192600*0.95)	1,82,970.00
Direct Labour(149,800*0.45)	67,410.00
Manufacturing overhead(64,200*0.35	22,470.00	5,78,870.00
		18,95,390.00

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