Using the FIFO method, prepare the following for the Assembly a. A physical flow schedule b. An equivalent units calculation c. Calculation of unit costs. Round your answer to the nearest ce places). d. Cost of ending work in process and cost of goods transferred e. A cost reconciliation.
Using the FIFO method, prepare the following for the Assembly a. A physical flow schedule b. An equivalent units calculation c. Calculation of unit costs. Round your answer to the nearest ce places). d. Cost of ending work in process and cost of goods transferred e. A cost reconciliation.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Required:
3. Using the FIFO method, prepare the following for the Assembly Department:
a. A physical flow schedule
b. An equivalent units calculation
c. Calculation of unit costs. Round your answer to the nearest cent (i.e., two decimal
places).
d. Cost of ending work in process and cost of goods transferred out.
e. A cost reconciliation.
4. Prepare journal entries that show the flow of manufacturing costs for the Assembly
Department: (a) Materials are added at the end of the process, (b) conversion costs are
recorded, and (c) units are transferred to Finished Goods.
Transcribed Image Text: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
$ 45,400
Direct materials
$22,000
|
Conversion costs
$13,800
S 16,700
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
$142,845
Percentage of completion:
Beginning inventory
40%
55%
Ending inventory
80
50
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