In: Accounting
Use the following information for the Quick Study below.
[The following information applies to the questions
displayed below.]
Carlberg Company has two manufacturing departments, assembly and
painting. The assembly department started 12,300 units during
November. The following production activity unit and cost
information refers to the assembly department’s November production
activities.
Assembly Department | Units | Percent of Direct Materials |
Percent of Conversion |
||||||
Beginning work in process | 3,200 | 75 | % | 25 | % | ||||
Units transferred out | 10,200 | 100 | % | 100 | % | ||||
Ending work in process | 5,300 | 90 | % | 40 | % | ||||
Beginning work in process inventory—Assembly dept |
$ | 1,767 (consists of $1,143 for direct
materials and $624 for conversion) |
|
Costs added during the month: | |||
Direct materials | $ | 13,827 | |
Conversion | $ | 17,856 | |
rev: 12_16_2019_QC_CS-193881
QS 20-12 Weighted average: Assigning costs to output LO C3
Required:
Assign costs to the assembly department’s output—specifically, the
units transferred out to the painting department and the units that
remain in process in the assembly department at month-end. Use the
weighted-average method. (Do not round intermediate
calculations.)
Statement of Equivalent Units [Weighted Average Method] | ||||||
Input | Particulars | Output | Material | Conversion | ||
Units | Units | % | EOU | % | EOU | |
3,200 | Opening Stock | |||||
12,300 | Input Introduce | |||||
Units Completed & Trfd. :- | 10,200 | 100% | 10,200 | 100% | 10,200 | |
Closing Stock | 5,300 | 90% | 4,770 | 40% | 2,120 | |
15,500 | Total | 15,500 | 14,970 | 12,320 | ||
Statement of Equivalent Cost Per Unit | ||||||
Particulars | Material ($) | Conversion ($) | ||||
Total Cost Incurred (Beginning + Current) [A] | $14,970 | $18,480 | ||||
[$1,143 + $13,827] | [$624 + $17,856] | |||||
Equivalent Units [B] | 14,970 | 12,320 | ||||
Cost per Equivalent Unit [A / B] | $1.00 | $1.50 | ||||
Statement of Evalution | ||||||
Particulars | Amount ($) | |||||
Units Completed & Trfd. (10,200 Units) | ||||||
Direct Material [10,200 x $ 1.00] | $10,200 | |||||
Conversion Cost [10,200 x $ 1.50] | $15,300 | |||||
Total Cost of FG Units Completed & Trfd. | $25,500 | |||||
Closing Stock WIP (5,300 Units) | ||||||
Direct Material [4,770 x $ 1.00] | $4,770 | |||||
Conversion Cost [2,120 x $ 1.50] | $3,180 | |||||
Total Cost of Closing WIP | $7,950 | |||||
Production Cost Report | ||||||
Particulars | Units | Amount ($) | Particulars | Units | Amount ($) | |
To Opening Sock WIP | 3,200 | $1,767 | By Finished Goods Trfd. | 10,200 | $25,500 | |
To Direct Material Cost | 12,300 | $13,827 | ||||
To Conversion Cost | $17,856 | By Closing Stock WIP | 5,300 | $7,950 | ||
Total | 15,500 | $33,450 | Total | 15,500 | $33,450 | |