McKnight 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 McKnight 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. Conversioncosts are added evenly during the assembly department's process. McKnight uses the weighted-average method of process costing. Consider the following data for the assembly department in April:(Click the icon to view the data.)RequiredWork in process, endingAccounted forEquivalent units of work done to dateNow summarize the total costs to account for.Work in process, beginningCosts added in current periodTotal costs to account forCompleted and transferred outWork in process, endingIZU570Total costs accounted forTotalProduction Costs$Next calculate cost per equivalent unit for direct materials and conversion costs.DirectMaterials1201,686 $29,39431,080 $57019,380 $57034Production Costs11,544408015,624DirectMaterials1,530 $17,85019,380 $ConversionCostsCosts incurred to dateDivide by Equivalent units of work done to dateCost per equivalent unitFinally assign total costs to units completed (and transferred out) and to units in ending work in process.TotalConversionDirectMaterialsCosts1846811,7004681125045011,700ConversionCosts2515611,54411,70026550453027,324Data tablePhysical Units Direct(Frames) Materials60$1,530510450120Work in process, April 1ªStarted during AprilCompleted during AprilWork in process, April 30bTotal costs added during April$17,850aDegree of completion: direct materials, 100%; conversion costs, 40%.Degree of completion: direct materials, 100%; conversion costs, 15%.PrintDoneConversionCosts$156$11,544IX

Name: McKnight Handcraft is a manufacturer of picture frames for large reta
Uploaded: 2024-03-20T06:33:06.000Z
Channel: Bartleby
Description: McKnight 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

Direct material cost is the cost of raw material produced or purchased to produce the final…

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Accounting

McKnight 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 McKnight 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. McKnight uses the weighted-average method of process costing. Consider the following data for the assembly department in April: (Click the icon to view the data.) Required Work in process, ending Accounted for Equivalent units of work done to date Now summarize the total costs to account for. Costs incurred to date 140 Completed and transferred out Work in process, ending Total costs accounted for 570 $ Total Production Costs Work in process, beginning Costs added in current period Total costs to account for Next calculate cost per equivalent unit for direct materials and conversion costs. Direct Materials 120 $ 570 1,686 $ 29,394 31,080 $ Direct Materials 19,380 $ 570 34 $ Conversion Costs 18 468 1,530 $ 17,850 19,380 $ 11,700 468 25 Direct Materials 11250 450 11,700 Conversion Costs Divide by Equivalent units of work done to date Cost per equivalent unit Finally assign total costs to units completed (and transferred out) and to units in ending work in process. Conversion Costs Total Production Costs 11,544 4080 15,624 156 11,544 11,700 26550 4530 27,324 Data table Work in process, April 1ª Started during April Completed during April Physical Units (Frames) 60 510 450 120 Print $17,850 Work in process, April 30 Total costs added during April *Degree of completion: direct materials, 100%; conversion costs, 40%. Degree of completion: direct materials, 100%; conversion costs, 15%. Direct Materials $1,530 Done Conversion Costs $156 $11,544 X