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 75,000 units made up of the following.

	Amount			Degree of Completion
Prior department costs transferred in from the Molding Department	$	192,000			100	%
Costs added by the Assembling Department
Direct materials	$	120,000			100	%
Direct labor		43,200			60	%
Manufacturing overhead		27,600			50	%
	$	190,800
Work in process, April 1	$	382,800

During April, 375,000 units were transferred in from the Molding Department at a cost of $960,000. The Assembling Department added the following costs.

Direct materials	$	576,000
Direct labor		216,000
Manufacturing overhead		113,400
Total costs added	$	905,400

Assembling finished 300,000 units and transferred them to the Packaging Department.

At April 30, 150,000 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	70
Manufacturing overhead	35

Required:

a. Prepare a production cost report using the weighted-average method. (Round "Cost per equivalent unit" to 2 decimal places.)

Production Cost Report-Weighted-Average Physical Total Prior Units Costs Department Materials Labor Manufacturing Costs Overhead Flow of Production Units Units to be accounted for Beginning WIP inventory Units started this period Total units to be accounted for I I Units accounted for Units completed and transferred out From beginning inventory Started and completed currently Total transferred out Unitsin ending WIP Inventory Total units accounted for 0000 Costs to be accounted for Costs in beginning WIP Inventory Current period costs Total costs to be accounted for OS OS OS 0$ Cost per equivalent unit: Prior department costs Materials Labor Manufacturing overhead Costs accounted for Costs assigned to units transferred out: Prior department costs Materials Labor Manufacturing overhead Total costs of units transferred out Costs assigned to ending WIP inventory Prior department costs Materials Labor Manufacturing overhead Total ending WIP inventory Total costs accounted for T $ S 0 O S OL SOL Sols

Answer 1

				Physical	Total	Prior Dept			Manu.
				Units	costs	Costs	Materials	Labor	OH
Flow of production of units
Units to be accounted for
Beginning WIP				75000
Units started this period				375000
Total units to be accounted for				450000
Units accounted for
Units completed and transferred out
From beginning WIP				75000
Started and completed currently				225000
Total transferred out				300000
Units in ending WIP				150000
Total units accounted for				450000
Costs to be accounted for
Costs in beginning WIP					$     382,800.00	$     192,000.00	$ 120,000.00	$   43,200.00	$   27,600.00
Current period costs					$ 1,865,400.00	$     960,000.00	$ 576,000.00	$ 216,000.00	$ 113,400.00
Total costs to be accounted for					$ 2,248,200.00	$ 1,152,000.00	$ 696,000.00	$ 259,200.00	$ 141,000.00
Cost per equivalent units
Prior department costs						$                 2.56
Materials							$             1.60
Labor								$             0.64
OH									$             0.40
Costs accounted for
Costs assigned to units transferred out
Prior department costs					$     768,000.00	$     768,000.00
Materials					$     480,000.00		$ 480,000.00
Labor					$     192,000.00			$ 192,000.00
OH					$     120,000.00				$ 120,000.00
Total costs of units transferred out					$ 1,560,000.00	$     768,000.00	$ 480,000.00	$ 192,000.00	$ 120,000.00
Costs assigned to ending WIP
Prior department costs					$     384,000.00	$     384,000.00
Materials					$     216,000.00		$ 216,000.00
Labor					$       67,200.00			$   67,200.00
OH					$       21,000.00				$   21,000.00
Total ending WIP					$     688,200.00	$     384,000.00	$ 216,000.00	$   67,200.00	$   21,000.00
Total costs accounted for					$ 2,248,200.00

Workings:

Statement of Equivalent Units

				Prior Dept			Manu.
			Total Units	Costs	Materials	Labor	OH
Completed and transferred out			300000	300000	300000	300000	300000
Ending WIP			150000	150000	135000	105000	52500
		Total	450000	450000	435000	405000	352500