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 111,000 units made up of the following:

	Amount			Degree of Completion
Prior department costs transferred in from the Molding Department	$	155,400			100	%
Costs added by the Assembling Department
Direct materials	$	99,900			100	%
Direct labor		45,007			70	%
Manufacturing overhead		25,026			50	%
	$	169,933
Work in process, April 1	$	325,333

During April, 511,000 units were transferred in from the Molding Department at a cost of $715,400. The Assembling Department added the following costs:

Direct materials	$	440,910
Direct labor		215,903
Manufacturing overhead		117,264
Total costs added	$	774,077

Assembling finished 411,000 units and transferred them to the Packaging Department.

At April 30, 211,000 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	30

Required:

a. Prepare a production cost report using FIFO. (Round "Cost per equivalent unit" to 2 decimal places.)

Answer 1

Solution a:

Kansas Supplier
Assembling Department
Computation of Equivalent unit (FIFO)
Particulars	Physical units	Prior department costs	Material	Labor	Manufacturing Overhead
Units to be accounted for:
Beginning WIP Inventory	111000
Units started this period	511000
Total unit to be accounted for	622000
Units Accounted for:
Units completed and transferred out
From beginning inventory Prior department and material - 0% Labor - 30% Overhead - 50%	111000	0	0	33300	55500
Started and completed currently	300000	300000	300000	300000	300000
Units in ending WIP Prior department - 100% Material - 90% Labor - 80% Overhead - 30%	211000	211000	189900	168800	63300
Total units accounted for	622000	511000	489900	502100	418800

Kansas Supplier
Assembling Department
Computation of Cost per Equivalent unit
Particulars	Total cost	Prior department costs	Material	Labor	Manufacturing Overhead
Current period cost	$1,489,477.00	$715,400.00	$440,910.00	$215,903.00	$117,264.00
Equivalent units		511000	489900	502100	418800
Cost per equivalent unit		$1.40	$0.90	$0.43	$0.28

Kansas Supplier
Assembling Department
Producton cost report - FIFO
Particulars	Total cost	Prior department costs	Material	Labor	Manufacturing Overhead
Cost Accounted for :
Cost assigned to unit transferred out:
Cost from beginning WIP Inventory	$325,333.00	$155,400.00	$99,900.00	$45,007.00	$25,026.00
Current cost added to complete beginning WIP:
Prior department cost	$0.00	$0.00
Material	$0.00		$0.00
Labor (33300*0.43)	$14,319.00			$14,319.00
Manufacturing overhead (55500*0.28)	$15,540.00				$15,540.00
Total Cost from beginning inventory	$355,192.00	$155,400.00	$99,900.00	$59,326.00	$40,566.00
Current cost of unit started and completed:
Prior department cost (300000*1.40)	$420,000.00	$420,000.00
Material (300000*0.90)	$270,000.00		$270,000.00
Labor (300000*0.43)	$129,000.00			$129,000.00
Manufacturing overhead (300000*0.28)	$84,000.00				$84,000.00
Total cost of unit started and completed	$903,000.00	$420,000.00	$270,000.00	$129,000.00	$84,000.00
Total cost of unit transferred out	$1,258,192.00	$575,400.00	$369,900.00	$188,326.00	$124,566.00
Cost assigned to ending WIP:
Prior department cost (211000*1.40)	$295,400.00	$295,400.00
Material (189900*0.90)	$170,910.00		$170,910.00
Labor (168800*0.43)	$72,584.00			$72,584.00
Manufacturing overhead (63300*0.28)	$17,724.00				$17,724.00
Total ending WIP inventory	$556,618.00	$295,400.00	$170,910.00	$72,584.00	$17,724.00
Total cost accounted for	$1,814,810.00	$870,800.00	$540,810.00	$260,910.00	$142,290.00