Question

Kansas Supplies is a manufacturer of plastic parts that uses the weighted-average process costing method to account for costs of production. It produces parts in three separate departments: Molding, Assembling, and Packaging. The following information was obtained for the Assembling Department for the month of April.

Work in process on April 1 had 115,000 units made up of the following:

	Amount			Degree of Completion
Prior department costs transferred in from the Molding Department	$	165,600			100	%
Costs added by the Assembling Department
Direct materials	$	108,100			100	%
Direct labor		47,965			70	%
Manufacturing overhead		29,355			50	%
	$	185,420
Work in process, April 1	$	351,020

During April, 515,000 units were transferred in from the Molding Department at a cost of $741,600. The Assembling Department added the following costs:

Direct materials	$	463,890
Direct labor		227,925
Manufacturing overhead		147,135
Total costs added	$	838,950

Assembling finished 415,000 units and transferred them to the Packaging Department.

At April 30, 215,000 units were still in work-in-process inventory. The degree of completion of work-in-process inventory at April 30 was as follows:

Direct materials	90	%
Direct labor	80
Manufacturing overhead	35

Required:

a. Prepare a production cost report using FIFO. (Round "Cost per equivalent unit" to 2 decimal places.)

KANSAS SUPPLIES
Assembling Department
Production Cost Report—FIFO
Flow of Production Units	COMPUTE EQUIVALENT UNITS
	Physical Units	Prior Department Costs	Materials	Labor	Manufacturing Overhead
Units to be accounted for:
Beginning WIP inventory
Units started this period
Total units to be accounted for
Units accounted for:
Units completed and transferred out:
From beginning inventory
Started and completed currently
Units in ending WIP inventory
Total units accounted for

Answer 1

Solution:

Kansas Supplies
Assembling Department
Computation of Equivalent unit (FIFO)
Particulars	Physical units	Prior department costs	Material	Labor	Manufacturing Overhead
Units to be accounted for:
Beginning WIP Inventory	115000
Units started this period	515000
Total unit to be accounted for	630000
Units Accounted for:
Units completed and transferred out
From beginning inventory Prior department and material - 0% Labor - 30% Overhead - 50%	115000	0	0	34500	57500
Started and completed currently	300000	300000	300000	300000	300000
Units in ending WIP Prior department - 100% Material - 90% Labor - 80% Overhead - 35%	215000	215000	193500	172000	75250
Total units accounted for	630000	515000	493500	506500	432750

Kansas Supplies
Assembling Department
Computation of Cost per Equivalent unit
Particulars	Total cost	Prior department costs	Material	Labor	Manufacturing Overhead
Current period cost	$1,580,550.00	$741,600.00	$463,890.00	$227,925.00	$147,135.00
Equivalent units		515000	493500	506500	432750
Cost per equivalent unit		$1.44	$0.94	$0.45	$0.34

Kansas Supplies
Assembling Department
Producton cost report - FIFO
Particulars	Total cost	Prior department costs	Material	Labor	Manufacturing Overhead
Cost Accounted for :
Cost assigned to unit transferred out:
Cost from beginning WIP Inventory	$351,020.00	$165,600.00	$108,100.00	$47,965.00	$29,355.00
Current cost added to complete beginning WIP:
Prior department cost	$0.00	$0.00
Material	$0.00		$0.00
Labor (34500*0.45)	$15,525.00			$15,525.00
Manufacturing overhead (57500*0.34)	$19,550.00				$19,550.00
Total Cost from beginning inventory	$386,095.00	$165,600.00	$108,100.00	$63,490.00	$48,905.00
Current cost of unit started and completed:
Prior department cost (300000*1.44)	$432,000.00	$432,000.00
Material (300000*0.94)	$282,000.00		$282,000.00
Labor (300000*0.45)	$135,000.00			$135,000.00
Manufacturing overhead (300000*0.34)	$102,000.00				$102,000.00
Total cost of unit started and completed	$951,000.00	$432,000.00	$282,000.00	$135,000.00	$102,000.00
Total cost of unit transferred out	$1,337,095.00	$597,600.00	$390,100.00	$198,490.00	$150,905.00
Cost assigned to ending WIP:
Prior department cost (215000*1.44)	$309,600.00	$309,600.00
Material (193500*0.94)	$181,890.00		$181,890.00
Labor (172000*0.45)	$77,400.00			$77,400.00
Manufacturing overhead (75250*0.34)	$25,585.00				$25,585.00
Total ending WIP inventory	$594,475.00	$309,600.00	$181,890.00	$77,400.00	$25,585.00
Total cost accounted for	$1,931,570.00	$907,200.00	$571,990.00	$275,890.00	$176,490.00