Question

Munoz Plastic Products Company makes a plastic toy using two departments: parts and assembly. The following data pertain to the parts department’s transactions in 2018:

1. The beginning balance in the Work in Process Inventory account was $12,300. This inventory consisted of parts for 1,000 toys. The beginning balances in the Raw Materials Inventory, Production Supplies, and Cash accounts were $162,350, $2,000, and $400,000, respectively.
2. Direct materials costing $138,750 were issued to the parts department. The materials were sufficient to make 8,000 additional toys.
3. Direct labor cost was $93,000, and indirect labor costs were $9,300. All labor costs were paid in cash.
4. The predetermined overhead rate was $0.25 per direct labor dollar.
5. Actual overhead costs other than production supplies and indirect labor for the year were $13,650, which was paid in cash.
6. The parts department completed work for 4,500 toys. The remaining toy parts were 20 percent complete. The completed parts were transferred to the assembly department.
7. All of the production supplies had been used by the end of 2018.
8. Over- or underapplied overhead was closed to the Cost of Goods Sold account.

Required (Please do NOT handwrite)

1. Determine the number of equivalent units of production.

2. Determine the product cost per equivalent unit.

3. Calculate the total cost allocated between the ending work in process inventory and parts transferred to the assembly department.

4. Record the transactions in a partial set of T-accounts.

Req A and B Req C Req D Calculate the total cost allocated between the ending work in process inventory and parts transferred to the assembly department. (Do not round intermediate calculations.) Cost Allocation To the assembly department To ending work-in-process inventory Total allocated cost Cash Raw Materials Beg. bal. Beg. bal. End. bal. End. bal. Work in process Parts Work in process Assembly Beg. bal. Beg. bal. End. bal. End. bal Production Supplies Cost of Goods Sold Beg. bal. Beg. bal. End. bal. End. bal. Manufacturing Overhead Beg. bal. End. bal.

Answer 1

1 Caluctation of Equivalent Units Statement of equivalent units of production Materials Conversion Cost Percentage Of Equivalent Percentage of Equivalen Units Input Units Particulars Output Units Completion 4500 Completion t Units Particulars Opening WIP Units Introduced 1000 Units Completed 8000 100 100 4500 4500 Closing WIP 20 900 20 4500 900 5400 9000 Total 9000 5400 Particulars Equivalent units Materials Conversion Cost 5400 5400 articulars Amount S 12,300 S 1,38.,750 S 93,000 S 23,250 S 2,67,300 enin Direct materials Direct labour Manufacturing overhead Total Cost per unit 50

Work in progress inventory- Parts Particulars Amount Particulars $ 12,300 Work in $ 1.38.750 Closing S 93,000 Amount s inventory - Assembly S 2,25,000 (4500 *50) 42.300900*50) Direct materials Direct labour $ 23.250 S2,67,300 $2,67,300 Cash Particulars Particulars Amount Amount $ 4.00.000Wages payable (direct) S 93.000 S 9,300 S 13.650 Wages payable (in Manufacturing OH S4,00,000 S1,15,950 Production supplies Particulars Amount Particulars Amount $ 2,000 Manufacturig OH S 2,000 nmg S 2,000 S 2,000 Raw materials Particulars Amount Particulars Amount 1.62.350 nmg Balance $1.62.350 S 2.000 Manufacturing OH Amount Particulars $ 9,300 Work in progress inventory-Parts S23,250 93000 *0.25) $ 2.000 Cost of $ 13,650 Particulars Wages payable (indirect) Production supplies Cash Amount S1.700 (Under Applied) (24950-23250) s sold S 24,950 S 24,950 Cost of goods sold Particulars Manufacturing OH Amount Particulars Amount $ 1,700 S 1,700 Work in progress inventory- Assembly Amount Particulars Particulars Amount Work in progress inventory- Parts2,25,000 S2,25.000