Problem (34 points KK Company uses a process-costing system. The company manufac

Question

Problem (34 points KK Company uses a process-costing system. The company manufactures a product department, direct materials are added at the beginning of the process; in the assembly department, additional direct materials are added at the end of the process. In both departments, conversion costs are incurred uniformly throughout the process. As work is completed, it is transferred out. The following table summarizes the production activity and costs for March: that is processed in two departments: molding and assembly. In the molding MoldingAssembly 10,000 8,000 -| $45,200 $13,800 $16,800 30,000 35,000 $56,250 $39,550 Beginning inventories Physical units Costs Transferred in Direct materials $22,000 Conversion costs Current production: Units started Units transferred out Costs: 25,000 Transferred in Direct materials Conversion costs Percentage of completion Beginning inventory $103,500 $136,500 40% 80% Ending inventory 50% 50% Using the weighted average method i. Calculate the following for the Molding department a. Equivalent units (6 pts) b. Unit costs (6 pts) c. Cost of ending work in process and cost of goods transferred out Calculate the following for the Assembly department a. 2. Equivalent units (9 pts) Unit costs (9 pts) b.

Explanation / Answer

1. a.

1.b.

Working:

2.a.

2.b.

Working:

Direct Conversion material Equivalent units 25000 30000

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