Kansas Supplies is a manufacturer of plastic parts that uses the weighted-averag

Question

Kansas Supplies is a manufacturer of plastic parts that uses the weighted-average process costing method to account for costs of production. It produces parts in three separate departments: Molding, Assembling, and Packaging. The following information was obtained for the Assembling Department for the month of April.

Work in process on April 1 had 112,000 units made up of the following:

During April, 512,000 units were transferred in from the Molding Department at a cost of $721,920. The Assembling Department added the following costs:

Assembling finished 412,000 units and transferred them to the Packaging Department.

At April 30, 212,000 units were still in work-in-process inventory. The degree of completion of work-in-process inventory at April 30 was as follows:

Required:

a. Prepare a production cost report using FIFO.(Round "Cost per equivalent unit" to 2 decimal places.)

   KANSAS SUPPLIES
   Assembling Department
Production Cost Report- FIFO
Flow of Production Units    Compute Equivalent Units

Costs    Details

   DETAILS

Amount Degree of Completion Prior department costs transferred in from the Molding Department $ 157,920 100 % Costs added by the Assembling Department Direct materials $ 89,600 100 % Direct labor 36,744 60 % Manufacturing overhead 28,416 50 % $ 154,760 Work in process, April 1 $ 312,680

Explanation / Answer

Solution:

Kansas Supplier Assembling Department Computation of Equivalent unit (FIFO) Particulars Physical units Prior department costs Material Labor Manufacturing Overhead Units to be accounted for: Beginning WIP Inventory 112000 Units started this period 512000 Total unit to be accounted for 624000 Units Accounted for: Units completed and transferred out From beginning inventory
Prior department and material - 0%
Labor - 40%
Overhead - 50% 112000 0 0 44800 56000 Started and completed currently 300000 300000 300000 300000 300000 Units in ending WIP
Prior department - 100%
Material - 80%
Labor - 70%
Overhead - 40% 212000 212000 169600 148400 84800 Total units accounted for 624000 512000 469600 493200 440800

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