Question

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Carlberg Company has two manufacturing departments, assembly and painting. The assembly department started 11,400 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			Percent of Conversion
Beginning work in process		2,000			75	%		25	%
Units transferred out		9,000			100	%		100	%
Ending work in process		4,400			85	%		35	%

Beginning work in process inventory—Assembly dept	$	2,186 (consists of $1,688 for direct materials and $498 for conversion)
Costs added during the month:
Direct materials	$	17,422
Conversion	$	20,582

Required:
Assign costs to the assembly department’s output—specifically, the units transferred out to the painting department and the units that remain in process in the assembly department at month-end. Use the weighted-average method. (Do not round intermediate calculations.)

Answer 1

Solution

Cost of units Transferred out	$                31,500
Cost of Ending Work in process Inventory	$                  8,690

Working

Statement of Equivalent Units(Weighted average)
				Material		Conversion cost
	Units			Complete %	Equivalent units	Complete %	Equivalent units
Transferred out	9,000			100%	9,000	100%	9,000
Ending WIP	4,400			85%	3,740	35%	1,540
Total	13,400			Total	12,740	Total	10,540

.

Cost per Equivalent Units (Weighted average)
COST		Material	Conversion cost	TOTAL
Beginning WIP Inventory Cost		$ 1,688	$ 498	$ 2,186
Cost incurred during period		$ 17,422	$ 20,582	$ 38,004
Total Cost to be accounted for		$ 19,110	$ 21,080	$ 40,190
Total Equivalent Units		12,740	10,540
Cost per Equivalent Units		$                   1.50	$                     2.00	$                3.50

.

Statement of cost (Weighted average)
Cost	Equivalent Cost/unit	Ending WIP		Transferred
		Units	Cost Allocated	Units	Cost Allocated
Material	$ 1.50	3,740	$             5,610.00	9,000	$ 13,500
Conversion cost	$ 2.00	1,540	$             3,080.00	9,000	$ 18,000
TOTAL	$ 40,190	TOTAL	$ 8,690	TOTAL	$ 31,500