Required: 1. Using the FIFO LIFO method, prepare the following for the Molding D
ID: 2571496 • Letter: R
Question
Required: 1. Using the FIFO LIFO method, prepare the following for the Molding Department: a. A physical flow schedule b. An equivalent units calculation c. Calculation of unit costs. Round to four decimal places. d. Cost of ending work in process and cost of goods transferred out e. A cost reconciliation Muskoge Com processed in two departments: Molding a rials are added at the beginning of the process; in the Assembly Department, additional direct materials are added at the end of the pr uniformly throughout the process. As work is completed, it is transferred out. The following table summarizes the production activity and costs for February pany uses a process-costing system. The company manufactures a product that is nd Assembly. In the Molding Department, direct mate- ocess. In both departments, conversion costs are incurred Assembly 8,000 s 45,200 S 16,800 Molding Beginning inventories: Physical units Costs: 10,000 Transferred in Direct materials Conversion costs S 22,000 S 13,800 Current production: Units started Units transferred out Costs: 25,000 30,000 35,000 Transferred in Direct materials Conversion costs s 56,250 $103,500 S 39,550 $136,500 Percentage of completion: Beginning inventory Ending inventory 50% 50 80Explanation / Answer
Molding Department
Quantities
Units
Material
Conversion
Units to be accounted for
Work in process
10000
Started into production
25,000
Total units
35,000
Units accounted for
Transferred out
30,000
30000
30000
Work in process, Ending
5000
5000
4000
Total units accounted for
35,000
35,000
34,000
Calculation of Equivalent Units of production - FIFO Method
Material
Conversion
Equivalent Unit Under weighted Average Method
35,000
34,000
Less: Equivalent Units in beginning Inventory
Materials - 10000 X 100%
10000
Conversion - 10000 X 40%
4000
Equivalent Unit Under FIFO Method
25000
30000
Cost per Equivalent Unit
Material
Conversion
Cost incurred during the period
56,250
103,500
Equivalent Unit Under FIFO Method
25000
30000
Cost per Equivalent Unit
2.25
3.45
Cost of ending WIP and Units Transferred Out
Equivalent Units
Quantities
Physical Units
Materials
Conversion Costs
Units to be accounted for
Work in process, beginning
10000
Started into production
25,000
Total units
35,000
Units accounted for
Transferred out
30,000
30,000
30,000
Work in process, ending
5000
5,000
4,000
Total units accounted for
35,000
35,000
34,000
Costs
Unit costs
Materials
Conversion Costs
Total
Ending WIP - Inventory
Equivalent Units of Production
5,000
4,000
Cost per Equivalent Unit
2.25
3.45
Cost of Ending WIP
11250
13,800
25,050
Units Transferred Out
Cost in the beginning WIP
22000
13,800
35,800
Cost to Complete the Units in beginning WIP in Process Inventory
Equivalent Units of production required to complete the units in Beginning WIP
0
6,000
Cost per Equivalent Unit
2.25
3.45
Cost to Complete the Units in beginning WIP
-
20,700
20,700
Cost of Units started and completed this period:
Units Started and completed this period
20000
20000
Cost per Equivalent Unit
2.25
3.45
Cost of Units started and completed this period
45,000
69,000
114,000
Total cost of unit transferred out
170,500
Cost Reconcilation Statement
Cost to be Accounted for:
Cost of beginning WIP
35,800
Cost Added to production during the period
159,750
Total Cost to be accounted for
195,550
Cost accounted for as follows:
Cost of ending WIP
25,050
Cost of units transferred out
170,500
Total Cost to be accounted for
195,550
Journal Entry
Particulars
Dr. Amt.
Cr. Amt.
WIP - Molding Dr.
56,250
To Material Inventory
56,250
WIP - Molding Dr.
103,500
To Conversion Costs
103,500
WIP - Assembly Dr.
170,500
To WIP - Molding
170,500
Assembly department
Quantities
Units
Material
Conversion
Transferred In
Units to be accounted for
Work in process
8000
Started into production
30,000
Total units
38,000
Units accounted for
Transferred out
35,000
35000
35000
35000
Work in process, Ending
3000
0
1500
3000
Total units accounted for
38,000
35,000
36,500
38,000
Calculation of Equivalent Units of prodution - FIFO Metod
Material
Conversion
Transferred In
Equivalent Unit Under weighted Average Method
35,000
36,500
38,000
Less: Equivalent Units in beginning Inventory
Materials - 8000 X 0%
0
Conversion - 8000 X 50%
4000
Transferred In - 8000 X 100%
8000
Equivalent Unit Under FIFO Method
35000
32500
30,000
Cost per Equivalent Unit
Material
Conversion
Transferred In
Cost incurred during the period
39,550
136,500
170,500
Equivalent Unit Under FIFO Method
35000
32500
30000
Cost per Equivalent Unit
1.13
4.20
5.68
Cost of ending WIP and Units Transferred Out
Equivalent Units
Quantities
Physical Units
Materials
Conversion Costs
Transfererd in
Units to be accounted for
Work in process, beginning
8000
Started into production
30000
Total units
38,000
Units accounted for
Transferred out
35,000
35,000
35,000
35000
Work in process, ending
3000
0
1500
3000
Total units accounted for
38,000
35,000
36,500
38,000
Costs
Unit costs
Materials
Conversion Costs
Transferred In
Total
Ending WIP - Inventory
Equivalent Units of Production
-
1,500
3,000
Cost per Equivalent Unit
1.13
4.20
5.68
Cost of Ending WIP
0
6,300
17,050
23,350
Units Transferred Out
Cost in the beginning WIP
0
16,800
45200
62,000
Cost to Complete the Units in beginning WIP in Process Inventory
Equivalent Units of production required to complete the units in Beginning WIP
8000
4,000
0
Cost per Equivalent Unit
1.13
4.20
5.68
Cost to Complete the Units in beginning WIP
9,040.00
16,800
-
25,840
Cost of Units started and completed this period:
Units Started and completed this period
27000
27000
27000
Cost per Equivalent Unit
1.13
4.20
5.68
Cost of Units started and completed this period
30,510
113,400
153,450
297,360
Total cost of unit transferred out
385,200
Cost Reconcilation Statement
Cost to be Accounted for:
Cost of beginning WIP
62,000
Cost Added to production during the period
346,550
Total Cost to be accounted for
408,550
Cost accounted for as follows:
Cost of ending WIP
23,350
Cost of units transferred out
385,200
Total Cost to be accounted for
408,550
Molding Department
Quantities
Units
Material
Conversion
Units to be accounted for
Work in process
10000
Started into production
25,000
Total units
35,000
Units accounted for
Transferred out
30,000
30000
30000
Work in process, Ending
5000
5000
4000
Total units accounted for
35,000
35,000
34,000
Calculation of Equivalent Units of production - FIFO Method
Material
Conversion
Equivalent Unit Under weighted Average Method
35,000
34,000
Less: Equivalent Units in beginning Inventory
Materials - 10000 X 100%
10000
Conversion - 10000 X 40%
4000
Equivalent Unit Under FIFO Method
25000
30000
Cost per Equivalent Unit
Material
Conversion
Cost incurred during the period
56,250
103,500
Equivalent Unit Under FIFO Method
25000
30000
Cost per Equivalent Unit
2.25
3.45
Cost of ending WIP and Units Transferred Out
Equivalent Units
Quantities
Physical Units
Materials
Conversion Costs
Units to be accounted for
Work in process, beginning
10000
Started into production
25,000
Total units
35,000
Units accounted for
Transferred out
30,000
30,000
30,000
Work in process, ending
5000
5,000
4,000
Total units accounted for
35,000
35,000
34,000
Costs
Unit costs
Materials
Conversion Costs
Total
Ending WIP - Inventory
Equivalent Units of Production
5,000
4,000
Cost per Equivalent Unit
2.25
3.45
Cost of Ending WIP
11250
13,800
25,050
Units Transferred Out
Cost in the beginning WIP
22000
13,800
35,800
Cost to Complete the Units in beginning WIP in Process Inventory
Equivalent Units of production required to complete the units in Beginning WIP
0
6,000
Cost per Equivalent Unit
2.25
3.45
Cost to Complete the Units in beginning WIP
-
20,700
20,700
Cost of Units started and completed this period:
Units Started and completed this period
20000
20000
Cost per Equivalent Unit
2.25
3.45
Cost of Units started and completed this period
45,000
69,000
114,000
Total cost of unit transferred out
170,500
Cost Reconcilation Statement
Cost to be Accounted for:
Cost of beginning WIP
35,800
Cost Added to production during the period
159,750
Total Cost to be accounted for
195,550
Cost accounted for as follows:
Cost of ending WIP
25,050
Cost of units transferred out
170,500
Total Cost to be accounted for
195,550
Journal Entry
Particulars
Dr. Amt.
Cr. Amt.
WIP - Molding Dr.
56,250
To Material Inventory
56,250
WIP - Molding Dr.
103,500
To Conversion Costs
103,500
WIP - Assembly Dr.
170,500
To WIP - Molding
170,500
Assembly department
Quantities
Units
Material
Conversion
Transferred In
Units to be accounted for
Work in process
8000
Started into production
30,000
Total units
38,000
Units accounted for
Transferred out
35,000
35000
35000
35000
Work in process, Ending
3000
0
1500
3000
Total units accounted for
38,000
35,000
36,500
38,000
Calculation of Equivalent Units of prodution - FIFO Metod
Material
Conversion
Transferred In
Equivalent Unit Under weighted Average Method
35,000
36,500
38,000
Less: Equivalent Units in beginning Inventory
Materials - 8000 X 0%
0
Conversion - 8000 X 50%
4000
Transferred In - 8000 X 100%
8000
Equivalent Unit Under FIFO Method
35000
32500
30,000
Cost per Equivalent Unit
Material
Conversion
Transferred In
Cost incurred during the period
39,550
136,500
170,500
Equivalent Unit Under FIFO Method
35000
32500
30000
Cost per Equivalent Unit
1.13
4.20
5.68
Cost of ending WIP and Units Transferred Out
Equivalent Units
Quantities
Physical Units
Materials
Conversion Costs
Transfererd in
Units to be accounted for
Work in process, beginning
8000
Started into production
30000
Total units
38,000
Units accounted for
Transferred out
35,000
35,000
35,000
35000
Work in process, ending
3000
0
1500
3000
Total units accounted for
38,000
35,000
36,500
38,000
Costs
Unit costs
Materials
Conversion Costs
Transferred In
Total
Ending WIP - Inventory
Equivalent Units of Production
-
1,500
3,000
Cost per Equivalent Unit
1.13
4.20
5.68
Cost of Ending WIP
0
6,300
17,050
23,350
Units Transferred Out
Cost in the beginning WIP
0
16,800
45200
62,000
Cost to Complete the Units in beginning WIP in Process Inventory
Equivalent Units of production required to complete the units in Beginning WIP
8000
4,000
0
Cost per Equivalent Unit
1.13
4.20
5.68
Cost to Complete the Units in beginning WIP
9,040.00
16,800
-
25,840
Cost of Units started and completed this period:
Units Started and completed this period
27000
27000
27000
Cost per Equivalent Unit
1.13
4.20
5.68
Cost of Units started and completed this period
30,510
113,400
153,450
297,360
Total cost of unit transferred out
385,200
Cost Reconcilation Statement
Cost to be Accounted for:
Cost of beginning WIP
62,000
Cost Added to production during the period
346,550
Total Cost to be accounted for
408,550
Cost accounted for as follows:
Cost of ending WIP
23,350
Cost of units transferred out
385,200
Total Cost to be accounted for
408,550
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