Kremel 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 March: Required: 1. Using the Weighted average cost method, prepare the following for the molding department:      a. A physical flow schedule      b. An equivalent units calculation      c. Calculation of unit costs

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Kremel 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 March:

Required:
1. Using the Weighted average cost method, prepare the following for the molding department:
     a. A physical flow schedule
     b. An equivalent units calculation
     c. Calculation of unit costs
     d. Cost of ending work in process and cost of goods transferred out
     e. A cost reconciliation
2. Prepare journal entries that show the flow of manufacturing costs for the molding department.

Molding
Assembly
Beginning inventories:
Physical units
Costs:
Transferred in
10,000
8,000
$ 45,200
S 22,000
S 13,800
Direct materials
$ 16,800
Conversion costs
Current production:
Units started
25,000
Units transferred out
30,000
35,000
Costs:
Transferred in
Direct materials
$ 56,250
S103,500
S 39,550
$136,500
Conversion costs
Percentage of completion:
Beginning inventory
Ending inventory
40%
50%
80%
50%
Transcribed Image Text:Molding Assembly Beginning inventories: Physical units Costs: Transferred in 10,000 8,000 $ 45,200 S 22,000 S 13,800 Direct materials $ 16,800 Conversion costs Current production: Units started 25,000 Units transferred out 30,000 35,000 Costs: Transferred in Direct materials $ 56,250 S103,500 S 39,550 $136,500 Conversion costs Percentage of completion: Beginning inventory Ending inventory 40% 50% 80% 50%
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