Question

Dee Electronics makes game consoles in three processes: assembly, programming, and packaging. Direct materials are added at the beginning of the assembly process. Conversion costs are incurred evenly throughout the process. The Assembly Department had no Work-in-Process Inventory on October 31, (Click the icon to view additional information.) Read the requirements. Requirement 1. Prepare a production cost report for the Assembly Department for November. The company uses the weighted average method. (Complete all answer boxes. Enter a "O" for any zero balances. Round all cost per unit amounts to the nearest cent and all other amounts to the nearest whole dollar. Abbreviation used: EUP = equivalent units of production.) 0 Requirements Dee Electronics Production Cost Report-Assembly Department Month Ended November 30 Equivalent Units Physical Direct Conversion Units Materials Costs 1. Prepare a production cost report for the Assembly Department for November The company uses the weighted average method. 2. Prepare a T-account for Work-in-Process Inventory-Assembly to show its activity during November, including the November 30 balance. UNITS Units to account for: i More Info Total units to account for Units accounted for: In mid-November, Dee Electronics started production on 100,000 game consolos. Of this number, 90.000 game consoles were assembled during November and transferred out to the Programming Department. The November 30 Work-in-Process Inventory in the Assembly Department was 35% of the way through the assembly process. Direct materials costing $399,000 were placed in production in Assembly during November, direct labor of $139,000 was assigned, and manufacturing overhead of $130,280 was allocated to that department. Total units accounted for

Answer 1

Solution 1 :

Dee Electronics
Production Cost report - Assembly Department
Computation of Equivalent unit of Production
Particulars	Physical Units	Material	Conversion
Units to account for:
Beginning WIP	0
Started into Production	100000
Total units to account for	100000
Units accounted for:
Unit completed & Transferred out	90000	90000	90000
Units in ending inventory:	10000
Material (100%)		10000
Conversion (35%)			3500
Equivalent units of production	100000	100000	93500

Dee Electronics Computation of Cost per equivalent unit - Assembly department
Particulars	Material	Conversion	Total
Opening WIP	$0	$0	$0
Cost Added during Period	$399,000	$269,280	$668,280
Total cost to be accounted for	$399,000	$269,280	$668,280
Equivalent units of production	100000	93500
Cost per Equivalent unit	$3.99	$2.88
Costs accounted for as follows:
Cost of unit transferred out	$359,100	$259,200	$618,300
Ending Work In Process	$39,900	$10,080	$49,980
Total costs accounted for	$399,000	$269,280	$668,280

Dee Electronics Computation of Cost of ending WIP and units completed & transferred out - Assembly Department
Particulars	Material	Conversion	Total
Equivalent unit of Ending WIP	10000	3500
Cost per equivalent unit	$3.99	$2.88
Cost of Ending WIP (Equivalent unit * Cost per equivalent unit)	$39,900	$10,080	$49,980
Units completed and transferred	90000	90000
Cost of units completed & Transferred (Unit completed * cost per equivalent unit)	$359,100	$259,200	$618,300

Cost reconciliation - Assembly Department
Particulars	Amount
Costs to be accounted for:
Cost of beginning WIP inventory	$0.00
Cost added to production	$668,280.00
Total Costs to be accounted for	$668,280.00
Costs accounted for as follows:
Cost of unit transferred out	$618,300
Ending WIP:
Material	$39,900
Conversion	$10,080
Total Ending WIP	$49,980
Total costs accounted for	$668,280

Solution 2:

Work In Process - Assembly
Particulars	Debit	Particulars	Credit
Beg Bal	$0.00	Transferred to Programming	$618,300.00
Direct material	$399,000.00	Ending Balance	$49,980.00
Direct labor	$139,000.00
Manufacturing overhead	$130,280.00
Total	$668,280.00	Total	$668,280.00