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.)

Answer 1

Formula sheet

A	B	C	D	E	F	G	H	I	J	K
2
3		Beginning Inventory	103000
4		Started during the period	503000
5		Total units to account for	=D3+D4
6		Units Transferred	403000
7		Ending inventory	=D5-D6	=D5-D6
8
9		In the weighted average method , average cost is applied to both units transferred out and units in closing work in process.
10
11		Equivalent units of production (EUP) - Weighted average method
12			Tranferred in	% Materials	EUP-Materials	% Direct Labor	EUP-Direct Labor	%Manufacturing Overhead	EUP-Manufacturing Overhead
13		Units Completed and Transferred out	=D6	1	=D13*E13	1	=D13*G13	1	=F13*I13
14		Units in ending inventory	=D7	0.9	=D14*E14	0.8	=D14*G14	0.4	=D14*I14
15		Equivalent units of production	=SUM(D13:D14)		=SUM(F13:F14)		=SUM(H13:H14)		=SUM(J13:J14)
16		Cost per equivalent units of production			Materials		Direct Labor		Manufacturing Overhead
17		Costs of the beginning inventory	135960		82400		35101		17202
18		Cost incurred in this period	663960		386160		162789		103848
19		Total Costs	=SUM(D17:D18)		=F17+F18		=H17+H18		=J17+J18
20		Equivalent units of production	=D15		=F15		=H15		=J15
21		Cost per equivalent units of production	=D19/D20		=F19/F20		=H19/H20		=J19/J20
22		Total Cost accounted for:
23		Cost in Beginning inventory	=D17+F17+H17+J17
24		Cost incurred during this period	=D18+F18+H18+J18
25		Total Cost to account for:	=SUM(D23:D24)
26
27		Cost Assignment and Reconciliation
28		Cost of units transferred out	EUP	Cost per EUP	Total Cost
29		Transferred in	=D13	=D21	=D29*E29
30		Direct Materials	=F13	=F21	=D30*E30
31		Direct Labor	=H13	=H21	=D31*E31
32		Manufacturing Overhead	=D6	=J21	=D32*E32
33		Total cost transferred out			=SUM(F29:F32)
34		Cost of ending inventory	EUP	Cost per EUP	Total Cost
35		Transferred in	=D7	=D21	=D35*E35
36		Direct Materials	=F14	=F21	=D36*E36
37		Direct Labor	=H14	=H21	=D37*E37
38		Manufacturing Overhead	=J14	=J21	=D38*E38
39		Total cost of ending work in progress			=SUM(F35:F38)
40		Total Cost accounted for:				=F33+F39
41
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