Question

The Assembly Department of Great Motors began September with no work in process inventory. During the month, production that cost $35,282 (direct materials, $8,242, and conversion costs, $27,040) was started on 23,000 units. Great completed and transferred to the Testing Department a total of 12,000 units. The ending work in process inventory was 35 % complete as to direct materials and 80% complete as to conversion work Read the reauirements Requirement 1. Compute the equivalent units for direct materials and conversion costs Assembly Department Equivalent Unit Computation Month Ended September 30 Equivalent Units Flow of Conversion Physical Direct Materials Costs Flow of Production Units Units accounted for Requirements Beginning work in process, September 1 Completed and transferred out 1. Compute the equivalent units for direct materials and conversion costs. 2. Compute the cost per equivalent unit. 3. Assign the costs to units completed and transferred out and ending work in process inventory 4. Record the journal entry for the costs transferred out of the Assembly Department to the Testing Department 5. Post all of the transactions in the Work in Process Inventory-Assembly T-account. What is the ending balance? Ending work in process, September 30 Started in production during September Total physical units accounted for Total physical units to account for Print Done

Answer 1

Great Motors Requirement 1 Equivalent Unit Computation Month Ended September 30 Flow of Equivalent Units Physical Direct Conversion Flow of Production Units Materials Costs Units accounted for Completed and transferred out 12000 12000 12000 Plus: Ending work in process, September 30 11000 3850 8800 Total physical units accounted for 23000 Total equivalent units 15850 20800 Requirement 2 Cost per Equivalent Unit Month Ended September 30 Direct Conversion Materials Costs Beginning work in process Plus: Costs added during September 0 0 27040 8242 Total costs to account for 8242 27040 Divided by: Total equivalent units 15850 20800 Cost per equivalent unit 0.52 1.3 Requirement 3 Assembly Department Month Ended September 30 Assigning Costs Direct Conversion Materials Totals Costs Completed and transferred out: 12000 12000 Equivalent units completed and transferred out Multiplied by: Cost per equivalent unit 0.52 1.3 6240 15600 21840 Costs assigned to units completed and transferred out Ending work in process: Equivalent units in ending work in process, September 30 3850 8800 Multiplied by: Cost per equivalent unit 0.52 1.3 Costs assigned to units in ending work in process, Sept 30 2002 11440 13442 Total costs accounted for 35282 Requirement 5 Work in Process Inventory-Assembly O Trfd. To Testing Bal 21840 8242 27040 Bal 35282 DM Conv. Costs 13442 35282

Requirement 4 Journal Entry Debit in $ Credit in $ Particulars Date Work in Process Inventory-Testing a/c Dr. To Work in Process Inventory-Assembly 21840 21840