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 103,000 units made up of the following.

	Amount			Degree of Completion
Prior department costs transferred in from the Molding Department	$	135,960			100	%
Costs added by the Assembling Department
Direct materials	$	82,400			100	%
Direct labor		35,101			70	%
Manufacturing overhead		17,202			50	%
	$	134,703
Work in process, April 1	$	270,663

During April, 503,000 units were transferred in from the Molding Department at a cost of $663,960. The Assembling Department added the following costs.

Direct materials	$	386,160
Direct labor		162,789
Manufacturing overhead		103,848
Total costs added	$	652,797

Assembling finished 403,000 units and transferred them to the Packaging Department.

At April 30, 203,000 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 the weighted-average method. (Round "Cost per equivalent unit" to 2 decimal places.)

KANSAS SUPPLIES Assembling Department Production Cost Report—Weighted Average Physical Units Total Costs Prior Department Costs Materials Labor Manufacturing Overhead Flow of Production Units Units to be accounted for: Beginning WIP inventory Units started this period Total units to be accounted for 0 Units accounted for: Units completed and transferred out: From beginning inventory Started and completed currently Total transferred out 0 Units in ending WIP inventory Total units accounted for 0 0 0 0 0 Costs to be accounted for: Costs in beginning WIP inventory Current period costs Total costs to be accounted for $0 $0 $0 $0 $0 Cost per equivalent unit: Prior department costs Materials Labor Manufacturing overhead Costs accounted for: Costs assigned to units transferred out: Prior department costs Materials Labor Manufacturing overhead Total costs of units transferred out $0 Costs assigned to ending WIP inventory: Prior department costs Materials Labor Manufacturing overhead Total ending WIP inventory $0 Total costs accounted for

Answer 1

Solution:

Kansas Supplies
Assembling Department
Production cost report-Weighted Avergae
	Physical Units	Total costs	Prior Department Costs	Materials	Labor	Manufacturing Overhead
Flow of Production units
Units to be accounted for:
Beginning WIP Inventory	103000
Units started this period	503000
Total Units to be accounted for	606000
Units Accounted for:
Units completed and transferred out
From beginning inventory	103000
Started and completed currently (403000-103000)	300000
Total Transferred out	403000		403000	403000	403000	403000
Units in ending WIP (100%, 90%,70%,35%)	203000		203000	182700	162400	81200
Total units accounted for	606000		606000	585700	565400	484200
Costs to be accounted for:
Costs in Beginning WIP inventory		$2,70,663	$1,35,960	$82,400	$35,101	$17,202
Current period cost		$13,16,757	$6,63,960	$3,86,160	$1,62,789	$1,03,848
Total Costs to be accounted for		$15,87,420	$7,99,920	$4,68,560	$1,97,890	$1,21,050
Cost per equivalent unit:
Prior Department costs			$1.32
Materials				$0.80
Labor					$0.35
Manufacturing Overhead						$0.25
Costs accounted for:
Costs assigned to the units transferred out:
Prior Department costs		$5,31,960	$5,31,960
Materials		$3,22,400		$3,22,400
Labor		$1,41,050			$1,41,050
Manufacturing Overhead		$1,00,750				$1,00,750
Total costs of units transferred out		$10,96,160
Costs assigned to Ending WIP Inventory:
Prior Department costs		$2,67,960	$2,67,960
Materials		$1,46,160		$1,46,160
Labor		$56,840			$56,840
Manufacturing Overhead		$20,300				$20,300
Total Ending WIP Inventory		$4,91,260
Total costs accounted for		$15,87,420	$7,99,920	$4,68,560	$1,97,890	$1,21,050