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In: Accounting

Hound Havens produces plastic doghouses as part of a continuous process through two departments: Molding and...

Hound Havens produces plastic doghouses as part of a continuous process through two departments: Molding and Finishing. Direct materials and conversion are added throughout the month in both departments, but at different rates. The information presented was compiled at the end of April.

Molding
Department		 Finishing
Department
Beginning Inventories (on April 1):
Physical units in production carried forward from March 31 2,800 5,000
Costs:
Transferred Molding costs carried forward from March 31 $ 125,000
Direct materials costs carried forward from March 31 $ 33,340 15,000
Conversion costs carried forward from March 31 11,180 6,000
Current Production (in April):
Units started during April 48,200 ?
Units in ending inventories as of April 30 3,400 2,000
Costs:
Molding costs transferred to Finishing during April ?
Direct materials costs incurred in April $ 669,200 $ 496,000
Conversion costs incurred in April 521,840 147,600
Percentage of Completion:
Inventories with respect to direct materials on April 1 90 % 30 %
Inventories with respect to conversion on April 1 30 40
Inventories with respect to direct materials on April 30 80 % 25 %
Inventories with respect to conversion on April 30 20 30

Required:

a. Complete the following requirements for the Molding Department.

1. Prepare a schedule showing units started and completed in the Molding Department ­during April.

2. Compute the equivalent units of direct materials and conversion for the Molding Department in April.

3. Determine the cost per equivalent unit of input resource for the Molding Department during April.

4. Prepare the summary journal entry required to transfer units from the Molding ­Department to the Finishing Department during April.

5. Compute the costs assigned to ending inventory in the Molding Department on April 30.

b. Complete the following requirements for the Finishing Department.

1. Prepare a schedule showing units started and completed in the Finishing Department during April.

2. Compute the equivalent units of direct materials and conversion for the Finishing Department in April. Direct materials include both those transferred in from the Molding Department and those added by the Finishing Department.

3. Determine the cost per equivalent unit of input resource for the Finishing Department during April.

4. Prepare the summary journal entry required to transfer units from the Finishing Department to Finished Goods Inventory during April.

5. Compute the costs assigned to ending inventory in the Finishing Department on April 30.

Solutions

Expert Solution

A.

1.
Flow of physical units : molding department
units in beginning inventory, April 1 2800
units started in April 48200
units in process during April 51000
units in ending inventory, April -3400
units transferred to Assembly department in April 47600
units in beginning inventory, April 1 -2800
units started and completed in April 44800
2.
input resources : direct material conversion cost
to finish units in process on july 1 :
direct material (2800units required 10% to complete) 280
conversion (2800 units require 70% to complete) 1960
to start and complete 44800 units in july 44800 44800
to start units in process on july 31 :
direct material (3400units 80% complete) 2720
conversion (3400units 20% complete) 680
equivalent units of resources in july 47800 47440
3.
cost per equivalent unit in july direct material conversion cost
costs incurred by moulding department in july 669200 496000
equivalent units in April (see part 2) / 47800 / 47440
conversion (6000 equivalent units * $8) $14 $11

ekkarill92 answered 1 year ago
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