Question

The Carlberg Company has two manufacturing departments, assembly and painting. The assembly department started 12,200 units during November. The following production activity unit and cost information refers to the assembly department's November production activities Assembly Department Beginning work in process Units transferred out Ending work in process Units 3,000 10,000 5,200 Percent of Direct Materials Added 70% 100% 85% Percent of Conversion 30% 100% 35% $2,288 (includes $1,484 for direct materials and $804 for conversion) Beginning work in process inventory-Assembly dept Costs added during the month: Direct materials Conversion $12,936 $16,926

Answer 1

1) Equivalent unit of material

	Units	% material	EUP-Material
Units transferred out	10000	100%	10000
Ending work in process	5200	85%	4420
Total	15200		14420

2) Equivalent unit of conversion

	Units	% conversion	EUP-conversion
Units transferred out	10000	100%	10000
Ending work in process	5200	35%	1820
Total	15200		11820

3) Cost per equivalent unit

	Choose numerator	/	Choose denominator	=	Cost per equivalent unit
	Total cost to be allocated	/	Equivalent unit	=	Cost per equivalent unit
Direct material	14420	/	14420	=	1
Conversion cost	17730	/	11820	=	1.5

4) Cost allocated

Cost of units transferred out
Direct material	10000
Conversion cost	15000
Total cost of units transferred out		25000
Cost of ending work in process
Direct material	4420
Conversion	2730
Total cost of ending work in process		7150
Total cost assigned		32150

Journal entry

Date	account and explanation	debit	Credit
	Work in process-Painting	25000
	Work in process-Assembly		25000
	(To record cost transferred out)