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 118,000 units made up of the following:

	Amount			Degree of Completion
Prior department costs transferred in from the Molding Department	$	173,460			100	%
Costs added by the Assembling Department
Direct materials	$	106,200			100	%
Direct labor		51,496			70	%
Manufacturing overhead		26,406			50	%
	$	184,102
Work in process, April 1	$	357,562

During April, 518,000 units were transferred in from the Molding Department at a cost of $761,460. The Assembling Department added the following costs:

Direct materials	$	446,580
Direct labor		244,704
Manufacturing overhead		121,884
Total costs added	$	813,168

Assembling finished 418,000 units and transferred them to the Packaging Department.

At April 30, 218,000 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	35

Required:

a. Prepare a production cost report using the weighted-average method. (Round "Cost per equivalent unit" to 2 decimal places.)

rev: 10_18_2016_QC_CS-65990

Answer 1

• All working forms part of the answer
• Working for Reconciliation of Units and degree of completion

		Degree of Completion
	Units	Prior Department	Direct Material	Direct Labor	Manufacturing Overhead
Beginning Units	118000	100%	100%	70%	50%
Introduced	518000
Total	636000
Transferred	418000	100%	100%	100%	100%
Ending units	218000	100%	90%	80%	35%

• Working for no. of Equivalent Units

		Equivalent Units for:
	Total Units	Prior Department	Direct Material	Direct Labor	Manufacturing Overhead
Transferred	418000	418000	418000	418000	418000
Ending units	218000	218000	196200	174400	76300
Total Equivalent Units		636,000	614,200	592,400	494,300

• Working for Cost per Equivalent Units

	Prior Department	Direct Material	Direct Labor	Manufacturing Overhead
Beginning Inventory Cost	$                    1,73,460.00	$                           1,06,200.00	$                            51,496.00	$                         26,406.00
Cost added during the period	$                    7,61,460.00	$                           4,46,580.00	$                        2,44,704.00	$                      1,21,884.00
Total Cost	$                   9,34,920.00	$                           5,52,780.00	$                        2,96,200.00	$                      1,48,290.00
Total Equivalent Units	636000	614200	592400	494300
Cost per equivalent Units	$                                   1.47	$                                          0.90	$                                      0.50	$                                    0.30

• Allocation of Cost on the basis of Equivalent Units and cost per Equivalent Units

Cost allocated to Units transferred:
	Cost per equivalent Units	Equivalent Unit	Cost Allocated
Prior Department	$                                   1.47	418000	$                        6,14,460.00
Direct Material	$                                   0.90	418000	$                        3,76,200.00
Direct Labor	$                                   0.50	418000	$                        2,09,000.00
Manufacturing Overhead	$                                   0.30	418000	$                        1,25,400.00
Total cost allocated			$                      13,25,060.00
Cost allocated to Ending WIP:
	Cost per equivalent Units	Equivalent Unit	Cost Allocated
Prior Department	$                                   1.47	218000	$                        3,20,460.00
Direct Material	$                                   0.90	196200	$                        1,76,580.00
Direct Labor	$                                   0.50	174400	$                            87,200.00
Manufacturing Overhead	$                                   0.30	76300	$                            22,890.00
Total cost allocated			$                        6,07,130.00

• Production Cost Report, based on working

Cost to be accounted for:
Beginning WIP Cost	$                    3,57,562.00
Cost incurred during the period [761460 + 813168]	$                  15,74,628.00
Total cost to be accounted for		$                         19,32,190.00
Cost Accounted for:
Cost of Units Transferred	$                  13,25,060.00
Cost of Ending WIP	$                    6,07,130.00
Total Cost accounted for		$                         19,32,190.00