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1. Summarize total assembly department costs for April 2017, and assign them to units completed (and transferred out) and to units in ending work in process. 2. Explain any difference between the cost of work completed and transferred out and the cost of ending work in process in the assembly department under the weighted-average method and the FIFO method. Should Marzollo's managers choose the weighted-average method or the FIFO method? Explain briefly.

1. Summarize total assembly department costs for April 2017, and assign them to units completed (and transferred out) and to units in ending work in process. 2. Explain any difference between the cost of work completed and transferred out and the cost of ending work in process in the assembly department under the weighted-average method and the FIFO method. Should Marzollo's managers choose the weighted-average method or the FIFO method? Explain briefly.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Marzollo Handcraft is a manufacturer of picture frames for large retailers. Every picture frame passes through two departments: the assembly department and the finishing department. This problem focuses on the assembly department. The process-costing system at Marzollo has a single direct-cost category (direct materials) and a single indirect-cost category (conversion costs). Direct materials are added when the assembly department process is 10% complete. Conversion costs are added evenly during the assembly department's process. Marzollo uses the FIFO method of process costing. Consider the following data for the assembly department in April 2017: E (Click the icon to view the data.) |(Click the icon to view the total costs assigned under the weighted-average method.) Read the requirements. Requirement 1. Summarize total assembly department costs for April 2017, and assign total costs to units completed (and transferred out) and to units in ending work in process. Begin by calculating the physical units and equivalent units. (For amounts with a 0 balance, make sure to enter "0" in the appropriate cell.) Equivalent Units Physical Units Direct Conversion (tons) Materials Costs Work in process, beginning 60 510 Transferred-in during current period
Transcribed Image Text:Marzollo Handcraft is a manufacturer of picture frames for large retailers. Every picture frame passes through two departments: the assembly department and the finishing department. This problem focuses on the assembly department. The process-costing system at Marzollo has a single direct-cost category (direct materials) and a single indirect-cost category (conversion costs). Direct materials are added when the assembly department process is 10% complete. Conversion costs are added evenly during the assembly department's process. Marzollo uses the FIFO method of process costing. Consider the following data for the assembly department in April 2017: E (Click the icon to view the data.) |(Click the icon to view the total costs assigned under the weighted-average method.) Read the requirements. Requirement 1. Summarize total assembly department costs for April 2017, and assign total costs to units completed (and transferred out) and to units in ending work in process. Begin by calculating the physical units and equivalent units. (For amounts with a 0 balance, make sure to enter "0" in the appropriate cell.) Equivalent Units Physical Units Direct Conversion (tons) Materials Costs Work in process, beginning 60 510 Transferred-in during current period
A P17-42 (similar to) Question Help Requirements Marzollo Handcraft is a manufacturer of picture frames for large retaile assembly department. The process-costing system at Marzollo has as department process is 10% complete. Conversion costs are added eve department in April 2017: E (Click the icon to view the data.) hishing department. This problem focuses on the sts). Direct materials are added when the assembly sting. Consider the following data for the assembly 1. Summarize total assembly department costs for April 2017, and assign them to units completed (and transferred out) and to units in ending work in process. (Click the icon to view th 2. Explain any difference between the cost of work completed and transferred out and the cost of ending work in process in the assembly department under the weighted-average method and the FIFO method. Should Marzollo's managers choose the weighted-average method or the FIFO method? Explain briefly. Read the requirements. Data Table Print Done Physical Units Direct Conversion Conversion Total Direct Conversion (Frames) Materials Costs Costs 60 $1,530 $156 Production Costs Materials Costs Beginning work in process, (April 1)ª Started during April 2017 Completed during April 2017 510 Completed and transferred out 26,550 $ 15,300 $ 11,250 450 120 Work in process, ending 4,530 4,080 450 Ending work in process, (April 30)° Total costs added during April 2017 $17,850 $11,544 2$ 31,080 $ 19,380 $ 11,700 Total costs accounted for "Degree of completion: direct materials, 100%; conversion costs, 40%. Degree of completion: direct materials, 100%; conversion costs, 15%. b
Transcribed Image Text:A P17-42 (similar to) Question Help Requirements Marzollo Handcraft is a manufacturer of picture frames for large retaile assembly department. The process-costing system at Marzollo has as department process is 10% complete. Conversion costs are added eve department in April 2017: E (Click the icon to view the data.) hishing department. This problem focuses on the sts). Direct materials are added when the assembly sting. Consider the following data for the assembly 1. Summarize total assembly department costs for April 2017, and assign them to units completed (and transferred out) and to units in ending work in process. (Click the icon to view th 2. Explain any difference between the cost of work completed and transferred out and the cost of ending work in process in the assembly department under the weighted-average method and the FIFO method. Should Marzollo's managers choose the weighted-average method or the FIFO method? Explain briefly. Read the requirements. Data Table Print Done Physical Units Direct Conversion Conversion Total Direct Conversion (Frames) Materials Costs Costs 60 $1,530 $156 Production Costs Materials Costs Beginning work in process, (April 1)ª Started during April 2017 Completed during April 2017 510 Completed and transferred out 26,550 $ 15,300 $ 11,250 450 120 Work in process, ending 4,530 4,080 450 Ending work in process, (April 30)° Total costs added during April 2017 $17,850 $11,544 2$ 31,080 $ 19,380 $ 11,700 Total costs accounted for "Degree of completion: direct materials, 100%; conversion costs, 40%. Degree of completion: direct materials, 100%; conversion costs, 15%. b
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