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 110,000 units made up of the following:

	Amount			Degree of Completion
Prior department costs transferred in from the Molding Department	$	152,900			100	%
Costs added by the Assembling Department
Direct materials	$	89,100			100	%
Direct labor		37,540			60	%
Manufacturing overhead		25,070			50	%
	$	151,710
Work in process, April 1	$	304,610

During April, 510,000 units were transferred in from the Molding Department at a cost of $708,900. The Assembling Department added the following costs:

Direct materials	$	379,080
Direct labor		196,400
Manufacturing overhead		119,980
Total costs added	$	695,460

Assembling finished 410,000 units and transferred them to the Packaging Department.

At April 30, 210,000 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	80	%
Direct labor	70
Manufacturing overhead	35

Required:

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

​ KANSAS SUPPLIES
​    Assembling Department
​ Production Cost Report- Weighted Average

Flow of Production Units
	Physical Units
Units to be accounted for:
Beginning WIP inventory	110,000
Units started this period	510,000
Total Units to be accounted for	620,000

   Compute Equivalent Units

		Prior Department Costs	Materials	Labor	Manufacturing Overhead
Units accounted for
Units Completed and transferred out
From beginning inventory	??
Started and completed currently	??
Total transferred out	??	??	??	??	??
Units in ending WIP inventory	??	??	??	??	??
Total Units accounted for	??	??	??	??	??

DETAILS

	Total Costs	Prior Department Costs	Materials	Labor	Manufacturing
Costs to be accounted for
Costs in beginning WIP inventory	??	??	??	??	??
Current period costs	??	??	??	??	??
Total costs to be accounted for	$	$	$	$	$
Cost per equivalent unit
Prior department costs		??
Materials			??
Labor				??
Manufacturing overhead					??
Costs accounted for
Costs assigned to units transferred out
Prior department costs	??	??
Materials	??		??
Labor	??			??
Manufacturing Overhead	??				??
Total costs of units transferred out	$
Costs assigned to ending WIP inventory
Prior department costs	??	??
Materials	??		??
Labor	??			??
Manufacturing overhead	??				??
Total ending WIP inventory	$$
Total costs accounted for	$	$	$	$	$

Answer 1

(A) - Statement of Equivalent Units

Particulars		Prior Department cost	Material	Labour	Manufacturing overhead
Units Accounted for
Units Completed and Transferred out
From Beginning Inventory	110000
Started and Completed Currently	300000
Total Transferred out	410000	410000	410000	410000	410000
Units in ending WIP inventory	210000	0	168000 (210000*80%)	147000 (210000*70%)	73500 (210000*35%)
Total Units Accounted for	620000	410000	578000	557000	483500

(B) - Details

Particulars	Total costs	Prior Department cost	Material	Labour	Manufacturing Overhead
Costs to be accounted for -
Costs in beginning WIP Inventory	$304610	$152900	$89100	$37540	$25070
Current Period costs	$1404360	$708900	$379080	$196400	$119980
Total Costs to be accounted for	$1708970	$861800	$468180	$233940	$145050
Costs per Equivalent Unit
Prior Department cost		$2.10195 ($861800/410000)
Material			$0.81 ($468180/578000)
Labour				$0.42 ($233940/557000)
Manufacturing overhead					$0.3 ($145050/483500)
Costs accounted for
Costs assigned to units transferred out
Prior Department cost	$861800	$861800 ($2.10195*410000)
Material	$332100		$332100 ($0.81*410000)
Labour	$172200			$172200 ($0.42*410000)
Manufacturing overhead	$123000				$123000 ($0.3*410000)
Total costs of units transferred out (A)	$1489100	$861800	$332100	$172200	$123000
Costs assigned to ending WIP Inventory
Prior Department cost	$0	$0
Material	$136080		$136080 ($0.81*168000)
Labour	$61740			$61740 ($0.42*147000)
Manufacturing Overhead	$22050				$22050 ($0.3*73500)
Total Ending Inventory (B)	$219870	$0	$136080	$61740	$22050
Total Costs accounted for (A+B)	$1708970	$861800	$468180	$233940	$145050