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 105,000 units made up of the following:

	Amount			Degree of Completion
Prior department costs transferred in from the Molding Department	$	140,700			100	%
Costs added by the Assembling Department
Direct materials	$	88,200			100	%
Direct labor		36,370			70	%
Manufacturing overhead		17,470			50	%
	$	142,040
Work in process, April 1	$	282,740

During April, 505,000 units were transferred in from the Molding Department at a cost of $676,700. The Assembling Department added the following costs:

Direct materials	$	406,980
Direct labor		168,470
Manufacturing overhead		104,280
Total costs added	$	679,730

Assembling finished 405,000 units and transferred them to the Packaging Department.

At April 30, 205,000 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	90	%
Direct labor	80
Manufacturing overhead	40

Required:

a. Prepare a production cost report using FIFO. (Round "Cost per equivalent unit" to 2 decimal places.)

Answer 1

Solution a:

Kansas Supplies
Assembling Department
Computation of Equivalent unit (FIFO)
Particulars	Physical units	Prior department costs	Material	Labor	Manufacturing Overhead
Units to be accounted for:
Beginning WIP Inventory	105000
Units started this period	505000
Total unit to be accounted for	610000
Units Accounted for:
Units completed and transferred out
From beginning inventory Prior department and material - 0% Labor - 30% Overhead - 50%	105000	0	0	31500	52500
Started and completed currently	300000	300000	300000	300000	300000
Units in ending WIP Prior department - 100% Material - 90% Labor - 80% Overhead - 40%	205000	205000	184500	164000	82000
Total units accounted for	610000	505000	484500	495500	434500

Kansas Supplies
Assembling Department
Computation of Cost per Equivalent unit
Particulars	Total cost	Prior department costs	Material	Labor	Manufacturing Overhead
Current period cost	$1,356,430.00	$676,700.00	$406,980.00	$168,470.00	$104,280.00
Equivalent units		505000	484500	495500	434500
Cost per equivalent unit		$1.34	$0.84	$0.34	$0.24

Kansas Supplies
Assembling Department
Producton cost report - FIFO
Particulars	Total cost	Prior department costs	Material	Labor	Manufacturing Overhead
Cost Accounted for :
Cost assigned to unit transferred out:
Cost from beginning WIP Inventory	$282,740.00	$140,700.00	$88,200.00	$36,370.00	$17,470.00
Current cost added to complete beginning WIP:
Prior department cost	$0.00	$0.00
Material	$0.00		$0.00
Labor (31500*0.34)	$10,710.00			$10,710.00
Manufacturing overhead (52500*0.24)	$12,600.00				$12,600.00
Total Cost from beginning inventory	$306,050.00	$140,700.00	$88,200.00	$47,080.00	$30,070.00
Current cost of unit started and completed:
Prior department cost (300000*1.34)	$402,000.00	$402,000.00
Material (300000*0.84)	$252,000.00		$252,000.00
Labor (300000*0.34)	$102,000.00			$102,000.00
Manufacturing overhead (300000*0.24)	$72,000.00				$72,000.00
Total cost of unit started and completed	$828,000.00	$402,000.00	$252,000.00	$102,000.00	$72,000.00
Total cost of unit transferred out	$1,134,050.00	$542,700.00	$340,200.00	$149,080.00	$102,070.00
Cost assigned to ending WIP:
Prior department cost (205000*1.34)	$274,700.00	$274,700.00
Material (184500*0.84)	$154,980.00		$154,980.00
Labor (164000*0.34)	$55,760.00			$55,760.00
Manufacturing overhead (82000*0.24)	$19,680.00				$19,680.00
Total ending WIP inventory	$505,120.00	$274,700.00	$154,980.00	$55,760.00	$19,680.00
Total cost accounted for	$1,639,170.00	$817,400.00	$495,180.00	$204,840.00	$121,750.00