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 112,000 units made up of the following:

	Amount			Degree of Completion
Prior department costs transferred in from the Molding Department	$	157,920			100	%
Costs added by the Assembling Department
Direct materials	$	89,600			100	%
Direct labor		36,744			60	%
Manufacturing overhead		28,416			50	%
	$	154,760
Work in process, April 1	$	312,680

During April, 512,000 units were transferred in from the Molding Department at a cost of $721,920. The Assembling Department added the following costs:

Direct materials	$	375,680
Direct labor		187,416
Manufacturing overhead		145,464
Total costs added	$	708,560

Assembling finished 412,000 units and transferred them to the Packaging Department.

At April 30, 212,000 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	40

Required:

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

   KANSAS SUPPLIES
​    Assembling Department
​ Production Cost Report- FIFO
Flow of Production Units    Compute Equivalent Units

	Physical units	Prior Department Costs	Materials	Labor	Manufacturing Overhead
Units to be accounted for
Beginning WIP inventory	??
Units started this period	??
Total units to be accounted for
Units accounted for:
Units completed and transferred out
From beginning inventory	??	??	??	??	??
Started and completed currently	??	??	??	??	??
Units in ending WIP inventory	??	??	??	??	??
Total units accounted for

Costs    Details

	Total Costs	Prior Department Costs	Materials	Labor	Manufacturing Overhead
Costs to be accounted for :
Costs in beginning WIP inventory	??	??	??	??	??
Current period costs	??	??	??	??	??
Total costs to be accounted	$	$	$	$	$
Cost per equivalent unit
Prior department costs		??
Materials			??
Labor				??
Manufacturing overhead					??

   DETAILS

	Total Costs	Prior Department Costs	Materials	Labor	Manufacturing overhead
Costs accounted for:
Costs assigned to units transferred out
Costs from beginning WIP inventory	??	??	??	??	??
Current costs added to complete beginning WIP inventory
Prior department costs	??	??
Materials	??		??
Labor	??			??
Manufacturing overhead	??				??
Total costs from beginning inventory	$$
Current costs of units started and completed
Prior department costs	??	??
Materials	??		??
Labor	??			??
Manufacturing overhead	??				??
total costs of units started and completed	$$
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

Solution:

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	112000
Units started this period	512000
Total unit to be accounted for	624000
Units Accounted for:
Units completed and transferred out
From beginning inventory Prior department and material - 0% Labor - 40% Overhead - 50%	112000	0	0	44800	56000
Started and completed currently	300000	300000	300000	300000	300000
Units in ending WIP Prior department - 100% Material - 80% Labor - 70% Overhead - 40%	212000	212000	169600	148400	84800
Total units accounted for	624000	512000	469600	493200	440800

Kansas Supplier
Assembling Department
Computation of Cost per Equivalent unit
Particulars	Total cost	Prior department costs	Material	Labor	Manufacturing Overhead
Current period cost	$1,430,480.00	$721,920.00	$375,680.00	$187,416.00	$145,464.00
Equivalent units		512000	469600	493200	440800
Cost per equivalent unit		$1.41	$0.80	$0.38	$0.33

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	$312,680.00	$157,920.00	$89,600.00	$36,744.00	$28,416.00
Current cost added to complete beginning WIP:
Prior department cost	$0.00	$0.00
Material	$0.00		$0.00
Labor (44800*0.38)	$17,024.00			$17,024.00
Manufacturing overhead (56000*0.33)	$18,480.00				$18,480.00
Total Cost from beginning inventory	$348,184.00
Current cost of unit started and completed:
Prior department cost (300000*1.41)	$423,000.00	$423,000.00
Material (300000*0.80)	$240,000.00		$240,000.00
Labor (300000*0.38)	$114,000.00			$114,000.00
Manufacturing overhead (300000*0.33)	$99,000.00				$99,000.00
Total cost of unit started and completed	$876,000.00
Total cost of unit transferred out	$1,224,184.00
Cost assigned to ending WIP:
Prior department cost (212000*1.41)	$298,920.00	$298,920.00
Material (169600*0.80)	$135,680.00		$135,680.00
Labor (148400*0.38)	$56,392.00			$56,392.00
Manufacturing overhead (84800*0.33)	$27,984.00				$27,984.00
Total ending WIP inventory	$518,976.00
Total cost accounted for	$1,743,160.00	$879,840.00	$465,280.00	$224,160.00	$173,880.00