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 120,000 units made up of the following.

	Amount			Degree of Completion
Prior department costs transferred in from the Molding Department	$	178,800			100	%
Costs added by the Assembling Department
Direct materials	$	100,800			100	%
Direct labor		53,920			70	%
Manufacturing overhead		32,520			50	%
	$	187,240
Work in process, April 1	$	366,040

During April, 520,000 units were transferred in from the Molding Department at a cost of $774,800. The Assembling Department added the following costs.

Direct materials	$	418,320
Direct labor		256,000
Manufacturing overhead		161,880
Total costs added	$	836,200

Assembling finished 420,000 units and transferred them to the Packaging Department.

At April 30, 220,000 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	30

Required:

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

wrpureu r portWYYYYvery very rewwwwwwwwwwwwwww KANSAS SUPPLIES Assembling Department Production Cost Report-Weighted Average Physical Units Total Costs Prior Department Costs Materials Labor Manufacturing Overhead Flow of Production Units Units to be accounted for: Beginning WIP inventory Units started this period Total units to be accounted for 120.000 520.000 640,000 Units accounted for: Units completed and transferred out: From beginning inventory Started and completed currently Total transferred out Units in ending WIP inventory Total units accounted for Costs to be accounted for: Costs in beginning WIP inventory Current period costs Total costs to be accounted for 0S 0S 0S 0S 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 $ 0 0 $ 0 $ 0 $ 0 $

Answer 1

Solution:

Kansas Supplies
Assembling Department
Production cost report-Weighted Avergae
	Physical Units	Total costs	Prior Department Costs	Materials	Labor	Manufacturing Overhead
Flow of Production units
Units to be accounted for:
Beginning WIP Inventory	120000
Units started this period	520000
Total Units to be accounted for	640000
Units Accounted for:
Units completed and transferred out
From beginning inventory	120000
Started and completed currently (420000-120000)	300000
Total Transferred out	420000		420000	420000	420000	420000
Units in ending WIP (100%, 90%,70%,35%)	220000		220000	198000	176000	66000
Total units accounted for	640000		640000	618000	596000	486000
Costs to be accounted for:
Costs in Beginning WIP inventory		$3,66,040	$1,78,800	$1,00,800	$53,920	$32,520
Current period cost		$22,85,320	$7,74,800	$4,18,320	$2,56,000	$8,36,200
Total Costs to be accounted for		$26,51,360	$9,53,600	$5,19,120	$3,09,920	$8,68,720
Cost per equivalent unit:
Prior Department costs			$1.49
Materials				$0.84
Labor					$0.52
Manufacturing Overhead						$1.79
Costs accounted for:
Costs assigned to the units transferred out:
Prior Department costs		$6,25,800	$6,25,800
Materials		$3,52,800		$3,52,800
Labor		$2,18,400			$2,18,400
Manufacturing Overhead		$7,50,746				$7,50,746
Total costs of units transferred out		$19,47,746
Costs assigned to Ending WIP Inventory:
Prior Department costs		$3,27,800	$3,27,800
Materials		$1,66,320		$1,66,320
Labor		$91,520			$91,520
Manufacturing Overhead		$1,17,974				$1,17,974
Total Ending WIP Inventory		$7,03,614
Total costs accounted for		$26,51,360	$9,53,600	$5,19,120	$3,09,920	$8,68,720