Question
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Porler Hakraf is a manufacturer of picture fraies folarge relailers. Every piclure frarne passes through two deparlrnents. the assembly departirient and he finishing departmenL This probleri focuses ori the assembly deparlment. The process-costing sysler al Porter has a sin e d"oc co gory direct rnal na s and a sn direc s ca gory con s? n ? s D" ma al are added when he assem dep nen process ?s 10% ung uwers on cu s re added ven y dun the assem 1 department's process Porter uses the FIFO method of process costing Consider the tolkwing data tor the assembly department in April 2014 EEB (Click the icon to view the data.) (Click the icon to view the total costs assigned under the weighted average method.) 1. Summarize total assembly department costs for April 2014, and assign total costs to units completed (and transferred out and to units in ending work in process 2. Explain any diference bctween thc cost o work completed and transferred out and the cost of ending work in proccss in the asscmby dcpartment under the we ghtod-averagc metncd and the FIFO mcthod. 5hculd Porters managers choosc the weighted-average method or the FIFO methon? Explain bnety Physieal Units Diret Conversion i Data Table tons) Materlals Costs Work in process, beginning Traristerred-in durin current perkd To accounl o Completed and transferred out during current period 90 520 Physical Units Direct Conversion Frames) 90 520 470 140 Materials Costs Beginning work in process, (April 1a Started during April 2014 Completed dunng Apnl 2014 Ending work in process, Monil 30) Intal cosis aied learne nt complet! ctirect matenals. 1cnv, cnmersinn casts, 40% tDegree or completion: direct materials, 100%; conversion costs, 35%. $2,11D $1,239 From beginning work in process 90 Slarted and compleled Work i process, erding Accounted for Equivalent units of work done in current period 2014 $19,24D $9,66D 110 Print Done
Explanation / Answer
Solution 1:
Assembly Department Computation of Equivalent unit (FIFO) Particulars Physical units Material Conversion Units to be accounted for: Beginning WIP Inventory 90 Units started this period 520 Total unit to be accounted for 610 Units Accounted for: Units completed and transferred out From beginning inventory
Material - 0%
Conversion - 60% 90 0 54 Started and completed currently 380 380 380 Units in ending WIP
Material - 100%
Conversion - 35% 140 140 49 Equivalent unit fo work done in current period 610 520 483
