Question

6. The Carlberg Company has two manufacturing departments, assembly and painting. The assembly department started 10,000 units during November. The following production activity unit and cost information refers to the assembly department’s November production activities. Assembly Department Units Percent of Direct Materials Added Percent of Conversion Added Beginning work in process 2,000 60 % 40 % Units transferred out 9,000 100 % 100 % Ending work in process 3,000 80 % 30 % Beginning work in process inventory—Assembly dept $ 1,581 (includes $996 for direct materials and $585 for conversion) Costs added during the month: Direct materials $ 10,404 Conversion $ 12,285 Required: Prepare the November 30 journal entry to record the transfer of units (and costs) from the assembly department to the painting department. Use the weighted-average method.

Answer 1

Solution:

Computation of Equivalent unit of Production - Weighted Average - Assembly Department
Particulars	Physical Units	Material	Conversion
Unit completed & Transferred out	9000	9000	9000
Closing WIP:	3000
Material (80%)		2400
Conversion (30%)			900
Equivalent units of production	12000	11400	9900

Computation of Cost per equivalent unit of Production - Weighted Average - Assembly Department
Particulars	Material	Conversion
Opening WIP	$996.00	$585.00
Cost Added during period	$10,404.00	$12,285.00
Total cost to be accounted for	$11,400.00	$12,870.00
Equivalent units of production	11400	9900
Cost per Equivalent unit	$1.00	$1.30

Computation of Cost of ending WIP and units completed & transferred out - Weighted Average - Molding Department
Particulars	Material	Conversion (Labor + Overhead)	Total
Equivalent unit of Ending WIP	2400	900
Cost per equivalent unit	$1.00	$1.30
Cost of Ending WIP (Equivalent unit * Cost per equivalent unit)	$2,400	$1,170	$3,570
Units completed and transferred	9000	9000
Cost of units completed & Transferred (Unit completed * cost per equivalent unit)	$9,000	$11,700	$20,700

Journal Entries - Carlberg Company
Event	Particulars	Debit	Credit
1	Work In Process - Painting Dr	$20,700.00
	To Work In Process Assembly		$20,700.00