Question

Jlioo 314 P5-29A Preparing a production cost report, no beginning WIP or costs w transferred in P4233 Abby Electronics makes DVD players 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. In mid-November, Abby Electronics started production on 101,000 DVD players. Of this number, 76,900 DVD players 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 $375,720 were placed in production in Assembly during November, direct labor of $157,500 was assigned, and manufacturing overhead of $98,505 was allocated to that department. Add Requirements 1. Prepare a production cost report for the Assembly Department for November. 2. Prepare a T-account for Work-in-Process Inventory--Assembly to show its activity during November, including the November 30 balance.

Answer 1

1 Production report using weight Average Method Physical units Units to be accounted for :- Beginning work in process Started into Production Total Units Accounted for (Given) 101000 (Given) 101000 Equivalent units for Material and Conversion cost Equivalent Unit Conversion Physical units Material Units to be accounted for:- Units Completed & transferred out Ending work in Process Total Units 76900 24100 101000 76900 24100 101000 76900 8435 85335 Ending WIP= Beginning WIP + Startred into production - Units completed & transferred out = 0 + 101000 - 76900 =24100 Ending WIP = Units in ending WIP x complete % 24100 x 100% 24100 x 35% Cost Per Equivalent Unit Material Conversion Total cost Cost To be accounted For:- Beginning work in process Cost added during month Total Cost - 375,720 375,720 $ $ $ - $ 256,005 $ 256,005 $ - Given) 631,725 (Given) 631,725 (A) Equivalent Units Cost per unit (B) (A)/(B) 101000 3.72 $ 85335 3.00 $ Conversion cost = labor + overhead =157500+98505 = 256005 Cost Reconcilliation Schedule Material Units Completed & transferred Units in Ending Inventory Total Cost Accounted for 286,068 89,652 375,720 Conversion $ $ $ Total cost 230,700 $ 516,768 25,305 $ 114,957 256,005 $ 631,725 Working: Units Completed & transferred Units in Ending Inventory 76900 x 3.72 24100 x 3.72 76900 x 3.00 8435 x 3.00 2 T-account for WIP Credit Transferred out $ 516,768 Work in process Inventory Assembly Debit Bal Nov 1 Direct Material $ Direct Labor Manufacturing Overhead $ Bal Nov 30 $ 375,720 157,500 98,505 114,957 Add beginning bal and DM, DL and OH incurred during month, deduct amount tranferred out to get Ending balance of WIP