Weighted Average Method, Journal Entries 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 — $45,200 Direct materials $22,000 — Conversion costs $13,800 $20,450 Current production: Units started 25,000 ? Units transferred out 30,000 35,000 Costs: Transferred in — ? Direct materials $56,750 $40,250 Conversion costs $103,500 $140,150 Percentage of completion: Beginning inventory 40% 50% Ending inventory 80 50 Required: Question Content Area 1. Using the weighted average method, prepare the following for the Molding Department:
Weighted Average Method, Journal Entries 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 — $45,200 Direct materials $22,000 — Conversion costs $13,800 $20,450 Current production: Units started 25,000 ? Units transferred out 30,000 35,000 Costs: Transferred in — ? Direct materials $56,750 $40,250 Conversion costs $103,500 $140,150 Percentage of completion: Beginning inventory 40% 50% Ending inventory 80 50 Required: Question Content Area 1. Using the weighted average method, prepare the following for the Molding Department:
Weighted Average Method, Journal Entries 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 — $45,200 Direct materials $22,000 — Conversion costs $13,800 $20,450 Current production: Units started 25,000 ? Units transferred out 30,000 35,000 Costs: Transferred in — ? Direct materials $56,750 $40,250 Conversion costs $103,500 $140,150 Percentage of completion: Beginning inventory 40% 50% Ending inventory 80 50 Required: Question Content Area 1. Using the weighted average method, prepare the following for the Molding Department:
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
—
$45,200
Direct materials
$22,000
—
Conversion costs
$13,800
$20,450
Current production:
Units started
25,000
?
Units transferred out
30,000
35,000
Costs:
Transferred in
—
?
Direct materials
$56,750
$40,250
Conversion costs
$103,500
$140,150
Percentage of completion:
Beginning inventory
40%
50%
Ending inventory
80
50
Required:
Question Content Area
1. Using the weighted average method, prepare the following for the Molding Department:
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b.
C.
3. Repeat Requirements 1 and 2 for the Assembly Department.
a. A physical flow schedule:
Assembly Department, Physical flow schedule:
Units to account for:
Total units to account for
Units accounted for:
Units completed and transferred out:
Total units accounted for
b. An equivalent units calculation
Total Equivalent Units
ect Materials
Conversion Costs
Transferred In
c. Calculate the total unit costs. Round your intermediate computations and final answer to four decimal places.
per unit
d. Calculate the cost of ending work in process and cost of goods transferred out. Round your answers to the nearest
dollar.
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Cost of ending work in process: $
Cost of goods transferred out: $
e. A cost reconciliation. If required, round your answers to the nearest dollar.
Costs to account for:
Beginning work in process $
Costs incurred
Total costs to account for $
Costs accounted for:
Transferred out
2$
Ending work in process
Total costs accounted for $
Note: Cost reconciliation totals differ due to rounding error.
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) the units are transferred to Finished
Goods.
a.
b.
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Definition Definition Operation costing method employed to determine the value of a product at each process or stage of the production process, applicable where goods produced from a series of continuous operations or procedure. Process costing is employed by businesses that manufacture goods and where production is in repetitive inflow.
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