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: 1. Using the FIFO method, prepare the following for the Molding Department:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

100%

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