Chapter 18, Problem 32AP

Dee Electronics makes game consoles in three processes: assembly, programming, and packaging. Direct materials are added at the beginning of the assembly process. Conversion costs are incurred evenly throughout the process. The Assembly Department had no Work-in-Process Inventory on October 31. In mid-November, Dee Electronics started production on 100,000 game consoles. Of this number, 90,000 game consoles were assembled during November and transferred out to the Programming Department. The November 30 Work-in-Process Inventory in the Assembly Department was 35% of the way through the assembly process. Direct materials costing $399,000 were placed in production in Assembly during November, direct labor of $139,000 was assigned, and manufacturing overhead of $130,280 was allocated to that department.

Requirements

1. 1. Prepare a production cost report for the Assembly Department for November. The company uses the weighted-average method.
2. 2. Prepare a T-account for Work-in-Process Inventory—Assembly to show its activity during November, including the November 30 balance.