Question

Munoz Plastic Products Company makes a plastic toy using two departments: parts and assembly. The following data pertain to the parts department’s transactions in 2018:

1. The beginning balance in the Work in Process Inventory account was $12,300. This inventory consisted of parts for 1,000 toys. The beginning balances in the Raw Materials Inventory, Production Supplies, and Cash accounts were $162,350, $2,000, and $400,000, respectively.
2. Direct materials costing $138,750 were issued to the parts department. The materials were sufficient to make 8,000 additional toys.
3. Direct labor cost was $93,000, and indirect labor costs were $9,300. All labor costs were paid in cash.
4. The predetermined overhead rate was $0.25 per direct labor dollar.
5. Actual overhead costs other than production supplies and indirect labor for the year were $13,650, which was paid in cash.
6. The parts department completed work for 4,500 toys. The remaining toy parts were 20 percent complete. The completed parts were transferred to the assembly department.
7. All of the production supplies had been used by the end of 2018.
8. Over- or underapplied overhead was closed to the Cost of Goods Sold account.

Required

1. Determine the number of equivalent units of production.

2. Determine the product cost per equivalent unit.

3. Calculate the total cost allocated between the ending work in process inventory and parts transferred to the assembly department.

4. Record the transactions in a partial set of T-accounts.

Req A and B Req C Req D Determine the number of equivalent units of production. Determine the product cost per equivalent unit. (Round "Cost per equivalent unit" answer to 2 decimal places.) a. Equivalent units Cost per equivalent unit Req A and B Req C Req D Calculate the total cost allocated between the ending work in process inventory and parts transferred to the assembly department. (Do not round intermediate calculations.) Cost Allocation To the assembly department To ending work-in-process inventory Total allocated cost Cash Raw Materials Beg. bal. Beg. bal. End. bal. End. bal. Work in process Parts Work in process Assembly Beg. bal. Beg. bal. End. bal End. bal. Production Supplies Cost of Goods Sold Beg. bal. Beg. bal. End. bal. End. bal. Manufacturing Overhead Beg. bal. End. bal.

Answer 1

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estallocation To he assembly depastment (ss0ox3st 49, 500.00 321,750.00 taj allccated Cosb Note : 92550 (dm)+ (si)42000+23307sSo Cash Alc rasticulaxs ax ticulass mom Um 42000 9360 Indisect Labous manufackvsing evex head 13500 Balamce of 285200 00,000.00 400,000,00 sticolaxs Amoun ticvlass ixect matesial- 925S0 02000 machine ovexhead23cco 321,I50» Disect Labovs alance of 321,750-Co Tota 32),l50' o s in Poogessed Ascembled ticvlazs mom Opeanina Balance toosk in psogst 321,750 0 Balance of Tokal 32l,750.00 321,750

asticolass Amount Cpeaning balance2, 0o HanoPactusing Oveshead 2,000 Total 2,00.0 2,000. 0o mpun peaning Balance 2166ooooh in psogsess pats 925500 Balance oT 24,000 do Total 216,5500 usactusing oves head Ab l'asticulass Peoduchion Supply Cash 2,000 o0 Cost of geods Sof 13,500 oo 2U, 800. Tobal 2u,800.0o