For this problem we have to put it in like the book shows examples, for instance

Question

For this problem we have to put it in like the book shows examples, for instance how they have 3 colums one with physical units direct materials and conversion cost with the lables for things on the left saying where they go and what their for. I need help on this, its hard for me to understand and i would really appriciate it if the person who works on this problem could explain to me what and how you got the numbers and make the actual production cost report.

Amy Electronics makes game consoles in three processes: assembly, programming, and packing. Direct material are added a the beginning of the assembly process. Conversion cost are incurred evenly throughout the process. The assembly department had no work in process inventory on october 31. In mid- november, amy electronics started production on 101,000 game consoles. Of this number, 76,900 game consols were assembled during November and transfered 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 375,720 were placed in production in assembly during november, direct labor of 157,500 was assigned, and manufacturing overhead of 98,505 was allocated to that department.

1.Prepare a production cost report for the Assembly Department for november. The company uses the wighted average method.

2.Prepare a T-account for work in process inventory-Assembly to show its activity during november, including the november balance.

Explanation / Answer

Weighted average cost Beggining units 0 Transferred out 76,900 Started intro production 101000 Ending units 24,100 Units accounted for 101000 101000 Equivalent units Material Conversion cost Units transferred                      A 76900 76900 Ending Units 24,100 24,100 Completion 100% 35% B 24100 8435 Total units 101000 85335 Cost per equivalent units Particulars Material Conversion cost total As at beginning 0 0 0 Added during the month 375720 256005 631725 Cost to be accounted for 375720 256005 631725 Total eqivalent units 101000 85335 Cost per equivalent unit 3.72 3.00 6.72 Cost per equivalent unit = Cost to be accounted for / Total equivalent units Cost of ending work in progress Conversion cost Particulars Material Total Ending units 24,100 24,100 Cost per equivalent units 3.72 3.00 Completion 100% 35% Total cost 89652 25305 114957 Cost of goods transferred Conversion cost Particulars Material Total Number of units 76900 76900 Cost per equivalent units 3.72 3.00 6.72 Total amount 286068 230700 516768 Reconciliation report Cost of goods transferred 516768 Add Work in proress ending Material                                      89652 Conversion cost                        25305 114957 Total cost accounted for 631725

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