Question

Marzolo Handcraft is a manufacturer of picture frames for large retailers. Every picture frame passes through two departments the assembly department and the finishing department. This problem focuses on the assembly department. The process costing system at Marlo has a single direct-cost category direct materials) and a single indirect-cost category (conversion costs). Direct materials are added when the assembly department process is 10% complete Conversion costs are added evenly during the assembly department's process Martoloses the weighted average method of process costing Consider the following data for the assembly department in April 2017 Click the icon to view the data) Read the requirements Requirement 1. Summarize total assembly department costs for April 2017 and assign total costs to units completed and transferred out) and to unitsin ending work in process Begin by calculating the physical units and equivalent units Equivalent Units Physical Direct Conversion Flow of Production Units Materials Costs Work in process, beginning Started during current period To account for Completed and transferred out during current period

Answer 1

Physical units Direct, . Conversion Materials наб (1) Sommavize total allembly dependiment costs to April 2017, and align them to onits completed Cond kompared o ot) and they unibh in ending with in procell .- Equivalent unit walghe overage lethed: flow of production Eqpivelant units work in proces beginning 95 started during current seriod *70 atceon 181 completed and frewsferred cot in period 455 455 455 work in progrees ending (100 %. ; 304] 130_ 130 39 Accounted f&t 585 Equivalent units of wilt done to date .._585 ( degree of completion ; Direct Makrial -100 1. ; Conversion cost -30% Therefore equivalent units Direct Material - 585 Conversion costs - 494 cost per equivalent unit and alignment of costs uring I weighted average method 585 Pansferred out in cierrant (3) werk-in proces beginning cost incurred during Apri Total costs to account for (A) (1) Cost incurred to date (A). equivakat units Cost for equivalent unit of wark done Total Direct Converion Production Costs Materials celts $2653 1665 988 $29,496 17640 1 11,856 532149. $19,305 $12,844 -19,305 12,844 585 494 † 33 $26] (19301585) ((28941494)

¡ ¢15,015 $ 1,830 (455.4.24) is) Assignment of costs completed e transferred out work-in-progaus ending Total. costs accounted home (455x33) $ 26,845 $ 5,304 $42.90 (130 X 33) $ 1014 (39420) 419305] 12,844) 1 & 32149 (2) Issues Manager should focus on while reviewing the equivalent units calculation - > method followed is proces costing department/ division followed whether weighted average proces ting method & FIFO ( First in first out). procus costing method. → degree of completion with respect to beginning work-in-procells and with repect to ending work-in-proces . - costs Costs Related to added during beginning walk in process and the current period.