Question

Muskoge Company uses a process-costing system. The company manufactures a product that is
processed in two departments: Molding and Assembly. In the Molding Department, direct materials
are added at the beginning of the process; in the Assembly Department, additional direct
materials are added at the end of the process. In both departments, conversion costs are incurred
uniformly throughout the process. As work is completed, it is transferred out. The following
table summarizes the production activity and costs for February:

Beginning inventories for Molding; Assembly (first number for molding second number for assembly)
Physical units 10,000;8,000
Costs:
Transferred in � ;$ 45,200
Direct materials $ 22,000; �
Conversion costs $ 13,800 ;$ 16,800
Current production:
Units started 25,000 ; ?
Units transferred out 30,000 ; 35,000
Costs:
Transferred in � ; ?
Direct materials $ 56,250 ; $ 39,550
Conversion costs $103,500 $136,500
Percentage of completion:
Beginning inventory 40% ; 50%
Ending inventory 80 ; 50
Required:
1. Using the weighted average method, prepare the following for the Molding Department:
a. A physical flow schedule
b. An equivalent units calculation
c. Calculation of unit costs. Round to four decimal places.
d. Cost of ending work in process and cost of goods transferred out
e. A cost reconciliation
2. Prepare journal entries that show the flow of manufacturing costs for the Molding Department.
Materials are added at the beginning of the process.
3. Repeat Requirements 1 and 2 for the Assembly Department.

Answer 1

1. a, The physical flow ofgoods using weighted average method ofMolding Department is shownbelow: 1 a) Requirement 1 Molding Department Physical flowschedule Physical Units 0,000 Unit Started otal units to account for 35,000 Completed and transferredout Started & Completed Workin process, endinginventorv 0,000 20.000 5,000 Total units accounted for 35,000

b, Calculate equivalentunits usingweighted average method forMolding Departmentis as follows otal equivalent units ect Materials 35,000 34,000 onversion Costs Working alent Unit 90 incurred! Conversion o incurred Direct Unit duringCost(Laborduring eriod Material eriod and overhea Unit Completed & ransferred 100 100 30,000 30,000 30,000 osin 5,000 5,000 1009 80 Total Units 35,000

Calculate unit costs S 5.6857 per unit Working ost per Equivalent nit ofproduction aterials onversion Cost gnnng wo rk in 13,8 rocess ost Added during onth otal Costs Equivalent Units of roduction 56 78.250Costs 35 103 ost 17.30 UP 34,0 ost per Equivalent nit ofproduction 2.235TEUP 3.45 rounded to 4 decimals Total unit cost= 2.2357+3.45 Total unit cost= $ 5.6857

d. Calculate the cost ofendingwork in process and cost ofgoodstransferredout. Cost of endingwork in process: $ 24,979 Cost ofgoods transferredout: $ 170,571 Working ost of Unit Transferred out ost per EUP Total Cost ect Materials onversion Cost otal Cost transferredout S 2.235'7 3000034500103 500 30,000 67.071 170.57 ost of Ending goods in process S 2.24 11.1 ect Materials onversion Cost otal Cost of Ending goods in rocess otal cost accoumted for 3.4 24,97