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

Question

Problem (34 points) KK Company uses a process-costing system. The company manufactures a product that is processed in two departments: molding and assembly. In the molding 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: Molding Assembly 10,0008,000 -| $45,200 $13,800 $16,800 30000 35,000 Physical units Costs: Transferred in Direct materials $22,000 Conversion costs Current production 25,000 Units started Units transferred out Costs Transferred in Direct materials Conversion costs $56,250$39,550 $103,500 $136,500 Percentage of completion: 40% 80% Beginning inventory 50% 50% Ending inventory Using the weighted average method: 1. 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 (4 pts) 2. Calculate the following for the Assembly department: a. Equivalent units(9 pts) b. Unit costs (9 pts)

Explanation / Answer

KK Company Product Cost Report Statement of equivalent production Moudling Department Materials Conversion Costs Particulars Input Particulars Output     % Equivalent Units     % Equivalent Units Beginning WIP 10000 Completed & transferred 30000 100 30000 100 30000 Addition 25000 Ending WIP 5000 100 5000 80 4000 35000 Total 35000 35000 34000 Cost element Total costs Equivalent units Cost per Equivalent units Direct Material 56250 35000 1.6071429 Conversion cost 103500 34000 3.0441176 Total 159750 Completed/Transferred Direct Material =30000*1.6071429 48214.29 Conversion costs =30000*3.0441176 91323.53 Cost of goods Manufactured 139538 Ending Inventory Direct Materials =5000*1.6071429 8035.7145 Conversion costs =4000*3.0441176 12176.47 Cost of ending Inventory 20212 Total Cost allocated 159750 Statement of equivalent production Assembly Department Materials Conversion Costs Particulars Input Particulars Output     % Equivalent Units     % Equivalent Units Beginning WIP 8000 Completed & transferred 35000 100 35000 100 35000 Addition 30000 Ending WIP 3000 50 1500 50 1500 38000 Total 38000 36500 36500 Cost element Total costs Equivalent units Cost per Equivalent units Direct Material 39550 36500 1.0835616 Conversion cost 136500 36500 3.739726 Total 176050 Completed/Transferred Direct Material =35000*1.0835616 37924.656 Conversion costs =35000*3.739726 130890.41 Cost of goods Manufactured 168815 Ending Inventory Direct Materials =1500*1.0835616 1625.3424 Conversion costs =1500*3.739726 5609.589 Cost of ending Inventory 7235 Total Cost allocated 176050

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.