Question

The Carlberg Company has two manufacturing departments, assembly and painting. The assembly department started 11,400 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 Added			Percent of Conversion
Beginning work in process		2,000			75	%		25	%
Units transferred out		9,000			100	%		100	%
Ending work in process		4,400			85	%		35	%

Beginning work in process inventory—Assembly dept	$	2,186 (includes $1,688 for direct materials and $498 for conversion)
Costs added during the month:
Direct materials	$	17,422
Conversion	$	20,582
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.) CARLBERG COMPANY Weighted-average method Costs of units transferred out Direct materials $9,000 Conversion Total costs transferred out $9,000 Costs of ending work in process Direct materials Conversion Total costs of ending work in process 0 Total costs assigned $9,000

Answer 1

CARLBERG COMPANY
Weighted-average method
Costs of units transferred out:
Direct materials					$    13,500
Conversion					$    18,000
Total costs transferred out						$ 31,500
Costs of ending work in process:
Direct materials					$      5,610
Conversion					$      3,080
Total costs of ending work in process						$    8,690
Total costs assigned						$ 40,190
Working:
# 1
Calculation of equivalent units of production:							Materials			Conversion
					Physical Units		% of completion	Equivalent units of production		% of completion	Equivalent units of production
Units completed and transferred out					9,000		100%	9,000		100%	9,000
Ending Units					4,400		85%	3,740		35%	1,540
Total					13,400			12,740			10,540
# 2							Materials	Conversion		Total
		Beginnig Work in Process					$           1,688	$                  498		$               2,186
		Costs added during the period					$         17,422	$            20,582		$             38,004
		Total Costs					$         19,110	$            21,080		$             40,190
		/ Equivalent units of production					12,740	10,540
		Cost per Equivalent Unit					$             1.50	$                 2.00
# 3
						Equivalent units of		Cost per		Total Costs	Total
						production		Equivalent units of
								production
		Costs of units transferred out:
		Direct Materials				9,000		$                 1.50		$             13,500
		Conversion				9,000		$                 2.00		$             18,000	$            31,500
		Costs of Ending units in process:
		Direct Materials				3,740		$                 1.50		$               5,610
		Conversion				1,540		$                 2.00		$               3,080	$              8,690
		Total									$            40,190