Question

Carlberg Company has two manufacturing departments, assembly and painting. The assembly department started 11,600 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 2,500 60 % 40 %

Units transferred out 9,500 100 % 100 %

Ending work in process 4,600 85 % 35 % Beginning work in process inventory—Assembly dept $ 1,648 (consists of $1,059 for direct materials and $589 for conversion) Costs added during the month: Direct materials $ 19,056 Conversion $ 17,187

Required: Prepare the November 30 journal entry to record the transfer of costs from the assembly department to the painting department. Use the weighted-average method.

Answer 1

Account Tittle	Debit	Credit
WIP Inventory-Painting	$29,450.00
WIP Inventory - Assembly		$29,450.00
To Trff of cost from Assembly Department

Working Note:-

Statement Showing Physical Flow
Beginning WIP inventory	2500
Add: Units started during May	11600
Less: Ending inventory	4600
Units completed and transferred	9500

Statement showing Computation of Equivalent Unit- Weighted Average
Particular	Whole units	Materials	Conversion
Unit Completed & Transferred	9500	9500	9500
Ending inventory	4600	3910	1610
Units accounted for	14100	13410	11110
Equivalent Unit of Production
	Materials	Conversion
Equivalent units of production	13410	11110
Statement showing Cost per Equivalent Unit
Particular	Tototal	Material	Conversion
Beginning WIP inventory	$1,648.00	$1,059.00	$589.00
Current costs incurred	$36,243.00	$19,056.00	$17,187.00
Tototal cost to account for (a)	$37,891.00	$20,115.00	$17,776.00
Equivalent units (b)		13410	11110
Cost per Equivalent unit  (a/b)		$1.50	$1.60
Computation of Cost of units completed and transferred
Material (9500*1.50)	$14,250.00
Conversion (9500*1.60)	$15,200.00
Tototal	$29,450.00