Molding and Assembly. In the Molding Department, direct materials are added at the beginning of the process; in the Assembly Department, additional direct materials are added at the end of the process. In both departments, conversion costs are incurred 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: Transferred in — $45,300 Direct materials $22,000
Molding and Assembly. In the Molding Department, direct materials are added at the beginning of the process; in the Assembly Department, additional direct materials are added at the end of the process. In both departments, conversion costs are incurred 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: Transferred in — $45,300 Direct materials $22,000
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter6: Process Costing
Section: Chapter Questions
Problem 4MCQ: To record the transfer of costs from a prior process to a subsequent process, the following entry...
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FIFO Method, Two-Department Analysis
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 materials are added at the beginning of the process; in the Assembly Department, additional direct materials are added at the end of the process. In both departments, conversion costs are incurred 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: | ||||
Transferred in | — | $45,300 | ||
Direct materials | $22,000 | — | ||
Conversion costs | $13,800 | $16,900 | ||
Current production: | ||||
Units started | 25,000 | ? | ||
Units transferred out | 30,000 | 35,000 | ||
Costs: | ||||
Transferred in | — | ? | ||
Direct materials | $56,250 | $40,250 | ||
Conversion costs | $103,500 | $143,000 | ||
Percentage of completion: | ||||
Beginning inventory | 40% | 50% | ||
Ending inventory | 80 | 50 |
Required:
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