Question

The Carlberg Company has two manufacturing departments, assembly and painting. The assembly department started 10,000 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			60	%		40	%
Units transferred out		9,000			100	%		100	%
Ending work in process		3,000			80	%		30	%
Beginning work in process inventory—Assembly dept $ 1,581 (includes $996 for direct materials and $585 for conversion) Costs added during the month: Direct materials $ 10,404 Conversion $ 12,285 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 FIFO method. (Do not round intermediate calculations.) CARLBERG COMPANY FIFO method Costs of units transferred out Cost of beginning work in process inventory Costs to complete beginning work in process Direct materials Conversion Total costs to complete 0 Cost of units started and completed this period Direct materials Conversion Total cost of units started and completed 0 Total costs of units transferred out $0 Cost of ending work in process inventory Direct materials Conversion Total costs of ending work in process 0 Total costs assigned $0 Prepare the November 30 journal entry to record the transfer of units (and costs) from the assembly department to the painting department. Use the FIFO method. Record the transfer of units from the assembly department to the painting department (FIFO method.) Calculate the assembly department’s cost per equivalent unit of production for materials and for conversion for November. Use the FIFO method.

Answer 1

(a) Prepare the November 30 journal entry to record the transfer of units (and costs) from the assembly department to the painting department. Use the FIFO method.

JOURNAL
	Debit	Credit
Work in process - Painting Department	20607
Work - in- process - assembly department		20607

(b) Record the transfer of units from the assembly department to the painting department (FIFO method.)

CARLBERG COMPANY
FIFO method
Costs of units transferred out	Direct Material	Conversion costs	Total
Cost of beginning work in process inventory	996	585	1581
Costs to complete beginning work in process
Direct materials	816		816
Conversion		1620	1620
Total costs to complete	1812	2205	4017
Cost of units started and completed this period
Direct materials	7140		7140
Conversion		9450	9450
Total cost of units started and completed	7140	9450	16590
Total costs of units transferred out	8952	11655	20607
Cost of ending work in process inventory
Direct materials	2448		2448
Conversion		1215	1215
Total costs of ending work in process	2448	1215	3663
Total costs assigned	11400	12870	24270

(c) Calculate the assembly department’s cost per equivalent unit of production for materials and for conversion for November. Use the FIFO method.

	Direct Material	Conversion costs
Beginning Inventory	996	585
Cost incurred during the month	10404	12285
Total costs	11400	12870
Units to complete
Beginning inventory (Physical Units - 2,000)	800	1200
Units started & completed during the month (Physical units - 7,000)	7000	7000
Ending Inventory - (Physical units - 3,000)	2400	900
Equivalent units for the month	10200	9100
Cost incurred during the month	10404	12285
Cost per unit - incurred during the month	1.02	1.35