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Recently, Mewah Designs expanded its market by becoming an original equipment supplier to
Jee Wrangler. Mewah Designs produces factory upgraded speakers specifically for Jee
Wrangler. The Kicker components and speaker cabinets are outsourced with assembly
remaining in-house. Mewah Designs assemble the product by placing the speakers and other
components in cabinets that define an audio package upgrade and that can be placed into the
Jee Wrangler, producing the desired factory-installed appearance. Speaker cabinets and
associated Kicker components are added at the beginning of the assembly process.
Assume that Mewah Designs uses the weighted-average method to cost out the audio package.
The following are cost and production data for the assembly process for April:
Production:
Units in process, April 1, 60% complete 60,000
Units completed and transferred out 150,000
Units in process, April 30, 20% complete 30,000
Costs:
WIP, April 1:
Cabinets RM 1,200,000
Kicker components RM 12,600,000
Conversion costs RM 5,400,000
Costs added during April:
Cabinets RM 2,400,000
Kicker components RM 25,200,000
Conversion costs RM 8,640,000
a) Develop a physical flow analysis for the assembly department for the month of April.
b) Calculate equivalent units of production for the assembly department for the month of
April.
c) Calculate the unit cost for the assembly department for the month of April.
d) Calculate the cost of units transferred out and the cost of EWIP inventory.
e) Develop a cost reconciliation for the assembly department for the month of April.
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