Question

The Carlberg Company has two manufacturing departments, assembly and painting. The assembly department started 10,300 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 Beginning work in process 3,000 60 % 40 % Units transferred out 10,000 100 % 100 % Ending work in process 3,300 80 % 30 % Beginning work in process inventory—Assembly dept $ 2,696 (includes $896 for direct materials and $1,800 for conversion) Costs added during the month: Direct materials $ 13,008 Conversion $ 14,685 rev: 04_18_2018_QC_CS-124631 QS 16-10 Weighted average: Equivalent units of production LO C2 Required: Calculate the assembly department’s equivalent units of production for materials and for conversion for November. Use the weighted-average method.

Answer 1

Ques 1
	Direct
Equivalent units of production—Weighted average	Materials	Conversion
Units completed & transferred out (10,000 x 100%)	10,000	10,000
Units of ending work in process
Direct materials, 3,300 x 80%	2,640
Conversion, 3,300 x 30%		990
Equivalent units of production	12,640	10,990
	Direct Materials
Cost per equivalent unit—Weighted average		Conversion
Costs of beginning work in process	$                             896	$                   1,800
Costs incurred this period	$                       13,008	$                14,685
Total costs	$                       13,904	$                16,485
Divided By Equivalent units of production	12,640	10,990
Cost per equivalent unit of production	1.1	1.5
Cost assignment—Weighted average
Costs of units transferred out
Direct materials (10,000 EUP x $1.1 per EUP)		$11,000
Conversion (10,000 EUP* $1.5 per EUP)		15,000
Total costs transferred out			26,000
Costs of ending work in process
Direct materials (2,640 EUP* x $1.10 per EUP)		2,904
Conversion (990 EUP* x $1.5 per EUP)		1,485
Total costs of ending work in process			4,389
Total costs assigned**			30,389
Equals costs to account for of $43,815, computed as 2696+13008+14685
Ques 2
Work in Process Inventory—Painting	26,000
Work in Process Inventory—Assembly		26000
To transfer costs of goods across departments.