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 104,000 units made up of the following:

	Amount			Degree of Completion
Prior department costs transferred in from the Molding Department	$	138,320			100	%
Costs added by the Assembling Department
Direct materials	$	88,400			100	%
Direct labor		31,528			60	%
Manufacturing overhead		21,264			50	%
	$	141,192
Work in process, April 1	$	279,512

During April, 504,000 units were transferred in from the Molding Department at a cost of $670,320. The Assembling Department added the following costs:

Direct materials	$	393,720
Direct labor		159,852
Manufacturing overhead		95,036
Total costs added	$	648,608

Assembling finished 404,000 units and transferred them to the Packaging Department.

At April 30, 204,000 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	30

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 Prior Department Costs Physical Units Materials Labor ManufacturingOv Units to be accounted for Beginning WIP inventory Units started this period 0 Total units to be accounted for Units accounted for. Units completed and transferred out From beginning inventory Started and completed currently Units in ending WP inventory Total units accounted for 0 0 DETAILS Costs Prior Total Costs Department Costs Manufacturing Overhead Materials Labor Costs to be accounted for Costs in beginning wIP inventory Current period costs Total costs to be accounted 0S 0 Cost per equivalent unit Prior department costs Materials Labor Manufacturing overhead DETAILS Prior Total Costs Department Materials Costs Manufacturing Overhead Labor 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 0 Prior department costs Materials Labor Manufacturing overhead Total costs of units started and completed 0 Total costs of units transferred out 0 Costs assigned to ending WIP inventory Prior department costs Materials Labor Manufacturing overhead Total ending WiIP inventory 0 0S 0S Total costs accounted for 0

Answer 1

Solution:

A. B C D E G Н K L Assembling Department Production Cost Report-FIFO 7 8 Prior Department Manufacturing Physical Units Materials 9 Labor Overhead Costs Flow of Production units: Units to be accounted for: 10 11 12 Beginning WIP Invent ory 104000 13 Units started this period Total Units to be accounted for Units Accounted for Units completed and transferred out From beginning invent ory (0, 0, 40%, 50%) 504000 14 608000 15 16 17 52000 104000 41600 Started and completed currently (404000-104000) Units in ending WIP (100%, 80%,70%,30% ) Total units account ed for 18 300000 300000 300000 300000 300000 19 204000 204000 163200 142800 61200 20 463200 413200 608000 504000 484400 21 22 Prior Departmet Manufacturing Total costs 23 Materials Labor Costs Overhead Costs 24 Costs to be accounted for: 25 $279,512 $1,318,928 $1,598,440 $31,528 $159,852 $191,380 $21,264 $138,320 $88,400 26 Costs in Beginning WIP invent ory $95,036 $670,320 $393,720 Current period cost 27 Total Costs to be accounted for $808,640 $482,120 28 $116,300 29 Cost per equivalent unit 30 $1.33 31 Prior Department costs $0.85 32 Materials $0.33 33 Labor Manufacturing Overhead $0.23 34 35 Sheet 705 Sheet721 (2) Sheet85 (5) Sheet85(6) Sheet221 (2) Sheet640 Sheet884 et734

A D G Н К L Manufacturing Prior Department Total costs Labor Materials 36 Costs Overhead Costs Costs accounted for: 37 Costs assigned to the units transferred out: 38 $279.512 Cost from beginning WIP inventory 39 138320 88400 31528 21264 Current costs added to complete beginning WIP Inventory 40 $0 Prior Department costs 41 0 $0 Materials 42 $13,728 Labor 43 13728 $11,960 Manufacturing Overhead Total costs from beginning WIP inventory Current costs of units started and completed 11960 44 $305,200 45 46 $399,000 $399,000 Prior Department costs 47 $255,000 $255,000 Materials 48 $99,000 $99.000 Labor 49 Manufacturing Overhead Total costs of units started and completed Total costs of units transferred out $69,000 $69,000 50 $822,000 $1,127,200 51 52 53 Costs assigned to Ending WIP Inventory: 54 $271,320 $271,320 Prior Department costs 55 $138,720 $138,720 Materials 56 $47,124 $47,124 Labor 57 Manufacturing Overhead Total Ending WIP Inventory $14,076 $14,076 58 $471,240 59 $146,124 $1,598,440 $670,320 $393,720 $83,076 Total costs accounted for 60 61 62 63 64 65 Sheet85 (6) Sheet 705 Sheet85 (5) Sheet221 (2) Sheet721 (2) et734 Sheet640 Sheet884