e. A cost reconciliation Problem 6.36 Weighted Average Method, Journal Entries Muskoge Company uses a process-costing system. The company manufactures a product that is processed in two departments: Molding and Assembly. In the Molding Department, direct mate- rials are added at the beginning of the process; in the Assembly Department, additional materials are added at the end of the process. In both departments, conversion costs are incurred JECTIVE 156 uniformly throughout the process. As work is completed, it is transferred out. The following table summarizes the production activity and costs for February: Molding Assembly Beginning inventories: Physical units 10,000 8,000 Costs: $ 45,200 Transferred in Direct materials Conversion costs $ 22,000 $ 13,800 $ 16,800 Current production: Units started ? 25,000 30,000 35,000 Units transferred out Costs: Transferred in Direct materials Conversion costs $ 56,250 $103,500 $ 39,550 $136,500 Percentage of completion: Beginning inventory Ending inventory 40% 50% 80 50 Required: 1. Using the weighted average method, prepare the following for the Molding Department: a. A physical flow schedule b. An equivalent units calculation Calculation of unit costs. Round to four decimal places. d. Cost of ending work in process and cost of goods transferred out C. e. A cost reconciliation 2. Prepare journal entries that show the flow of manufacturing costs for the Molding Depare ment. Materials are added at the beginning of the process. 3. Repeat Requirements 1 and 2 for the Assembly Department. VE 246 Problem 6.37 FIFO Method, Two-Department Analysis Refer to the data in Problem 6.36. Required: Repeat the requirements in Problem 6.36 using the FIFO method
e. A cost reconciliation Problem 6.36 Weighted Average Method, Journal Entries Muskoge Company uses a process-costing system. The company manufactures a product that is processed in two departments: Molding and Assembly. In the Molding Department, direct mate- rials are added at the beginning of the process; in the Assembly Department, additional materials are added at the end of the process. In both departments, conversion costs are incurred JECTIVE 156 uniformly throughout the process. As work is completed, it is transferred out. The following table summarizes the production activity and costs for February: Molding Assembly Beginning inventories: Physical units 10,000 8,000 Costs: $ 45,200 Transferred in Direct materials Conversion costs $ 22,000 $ 13,800 $ 16,800 Current production: Units started ? 25,000 30,000 35,000 Units transferred out Costs: Transferred in Direct materials Conversion costs $ 56,250 $103,500 $ 39,550 $136,500 Percentage of completion: Beginning inventory Ending inventory 40% 50% 80 50 Required: 1. Using the weighted average method, prepare the following for the Molding Department: a. A physical flow schedule b. An equivalent units calculation Calculation of unit costs. Round to four decimal places. d. Cost of ending work in process and cost of goods transferred out C. e. A cost reconciliation 2. Prepare journal entries that show the flow of manufacturing costs for the Molding Depare ment. Materials are added at the beginning of the process. 3. Repeat Requirements 1 and 2 for the Assembly Department. VE 246 Problem 6.37 FIFO Method, Two-Department Analysis Refer to the data in Problem 6.36. Required: Repeat the requirements in Problem 6.36 using the FIFO method
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:e.
A cost reconciliation
Problem 6.36 Weighted Average Method, Journal Entries
Muskoge Company uses a process-costing system. The company manufactures a product that is
processed in two departments: Molding and Assembly. In the Molding Department, direct mate-
rials are added at the beginning of the process; in the Assembly Department, additional
materials are added at the end of the process. In both departments, conversion costs are incurred
JECTIVE 156
uniformly throughout the process. As work is completed, it is transferred out. The following
table summarizes the production activity and costs for February:
Molding
Assembly
Beginning inventories:
Physical units
10,000
8,000
Costs:
$ 45,200
Transferred in
Direct materials
Conversion costs
$ 22,000
$ 13,800
$ 16,800
Current production:
Units started
?
25,000
30,000
35,000
Units transferred out
Costs:
Transferred in
Direct materials
Conversion costs
$ 56,250
$103,500
$ 39,550
$136,500
Percentage of completion:
Beginning inventory
Ending inventory
40%
50%
80
50
Required:
1. Using the weighted average method, prepare the following for the Molding Department:
a. A physical flow schedule
b. An equivalent units calculation
Calculation of unit costs. Round to four decimal places.
d. Cost of ending work in process and cost of goods transferred out
C.
e.
A cost reconciliation
2. Prepare journal entries that show the flow of manufacturing costs for the Molding Depare
ment. Materials are added at the beginning of the process.
3. Repeat Requirements 1 and 2 for the Assembly Department.
VE 246 Problem 6.37 FIFO Method, Two-Department Analysis
Refer to the data in Problem 6.36.
Required:
Repeat the requirements in Problem 6.36 using the FIFO method
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