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Carolina Manufacturing builds dog creates. Each dog create passes through the Assembly Department and the Quality Dept. You only need to look at the Assembly Department for this problem. The process accounting system at Carolina. has a single direct-cost category (direct materials) and a single indirect-cost category (conversion costs). Conversion costs are added evenly during the process. When the Assembly Dept finished work on each dog crate, it is immediately transferred to Quality.

Carolina uses the Weighted Average Cost Method of process costing. Data for the Assembly Department during July 2018 is:

Physical Units Direct Conversion
(Dog Crates) Materials Costs

Work-in-process, July 1* 7,000 $1,325,000 $505,500
Started during July 2018 25,000
Completed during July 2018 31,000
Work-in-process July 30** ?
Total costs added during
July 2018 $4,750,000 $2,678,000

*Degree of completion: DM 60%; CC 70%
**Degree of completion: DM 80%; CC 90%

You will need to complete the following:

a) Compute equivalent units in the Assembly Dept.

b) For each cost category, calculate the cost per equivalent unit.

c) Assign total costs to units completed and transferred out and to units in ending Work in Process

d) Prepare the journal entry to move costs from WIP-Assembly Department to the WIP- Quality Department

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Elin Hessel
Elin HesselLv2
28 Sep 2019

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Be Safe, Inc. manufactures car seatsin its Dallas plant. Each car seat passes through the Assembly Deptand the Testing Dept. This problem focuses on the Assembly Dept.the process-costing system at Be Safe, Inc. has a singledirect-cost category (direct materials) and a single indirect-costcategory (conversion costs). Direct materials are added at thebeginning of the process. Conversion costs are added evenly duringthe process. When the Assembly Dept finished work on each car seat,it is immediately transferred to Testing.

Be Safe, Inc. uses the FirstIn First Out Method of process costing.Data for the Assembly Dept for September 2014 is:

PhysicalUnits Direct Conversion

(CarSeats) Materials Costs

Work-in-process, Sep1* 5,000 $1,250,000 $402,750

Started during Sep2014 20,000

Completed during Sep 2014 22,500

Work-in-process Sep30** 2,500

Total costs added during

Oct2009 $4,500,000 $2,337,500

*Degree of completion: DM ?%; CC60%

**Degree of completion: DM ?%; CC70%

1.For each cost category; compute equivalent units in theAssembly Dept. Show

physical units in the first column of the schedule.

2. For each cost category, summarize total Assembly Dept costsfor Sep 2014 and

calculate the cost per equivalent unit.

3. Assign total costs to units completed and transferred out andto units in ending Work in Process

4. Prepare the journal entry to move costs from WIP-AssemblyDept to theWIP-

Testing Department.

1. Use the following information for the Quick Study below. [The following information applies to the questions displayed below.] The following refers to units processed by an ice cream maker in July. Gallons of Product Percent of Conversion Added Beginning work in process 408,000 35 % Goods started 796,000 100 Goods completed 856,000 100 Ending work in process 348,000 65 QS 3-8 Weighted average: Computing equivalent units of production LO C2 Compute the total equivalent units of production with respect to conversion for July using the weighted-average method. 2. QS 3-9A FIFO: Computing equivalent units LO C4 Compute the total equivalent units of production with respect to conversion for July using the FIFO method. 3. Use the following information for the Quick Study below. [The following information applies to the questions displayed below.] The Carlberg Company has two manufacturing departments, assembly and painting. The assembly department started 10,300 units during November. The following production activity unit and cost information refers to the assembly department’s November production activities. Assembly Department Units Percent of Direct Materials Added Percent of Conversion Added Beginning work in process 3,000 60 % 40 % Units transferred out 10,000 100 % 100 % Ending work in process 3,300 80 % 30 % Beginning work in process inventory—Assembly dept $ 2,696 (includes $896 for direct materials and $1,800 for conversion) Costs added during the month: Direct materials $ 13,008 Conversion $ 14,685 QS 3-10 Weighted average: Equivalent units of production LO C2 Required: Calculate the assembly department’s equivalent units of production for materials and for conversion for November. Use the weighted-average method. 4. QS 3-11 Weighted average: Cost per EUP LO C2 Required: Calculate the assembly department’s cost per equivalent unit of production for materials and for conversion for November. Use the weighted-average method. 5. QS 3-12 Weighted average: Assigning costs to output LO C3 Required: Assign costs to the assembly department’s output—specifically, the units transferred out to the painting department and the units that remain in process in the assembly department at month-end. Use the weighted-average method. (Do not round intermediate calculations.) 6. QS 3-13 Weighted average: Journal entry to transfer costs LO P4 Required: Prepare the November 30 journal entry to record the transfer of units (and costs) from the assembly department to the painting department. Use the weighted-average method. 8. QS 3-14A FIFO: Equivalent units of production LO C4 Required: Calculate the assembly department’s equivalent units of production for materials and for conversion for November. Use the FIFO method. 9. QS 3-15A FIFO: Cost per EUP LO C4 Required: Calculate the assembly department’s cost per equivalent unit of production for materials and for conversion for November. Use the FIFO method. 10. QS 3-16A FIFO: Assigning costs to output LO C4 Required: Assign costs to the assembly department’s output—specifically, the units transferred out to the painting department and the units that remain in process in the assembly department at month-end. Use the FIFO method. (Do not round intermediate calculations.) 11. QS 3-17A FIFO: Journal entry to transfer costs LO P4 Required: Prepare the November 30 journal entry to record the transfer of units (and costs) from the assembly department to the painting department. Use the FIFO method. 12. Use the following information for the Quick Study below. [The following information applies to the questions displayed below.] The Plastic Flowerpots Company has two manufacturing departments, molding and packaging. At the beginning of the month, the molding department has 2,100 units in inventory, 70% complete as to materials. During the month, the molding department started 18,500 units. At the end of the month, the molding department had 3,150 units in ending inventory, 80% complete as to materials. Units completed in the molding department are transferred into the packaging department. Cost information for the molding department for the month follows: Beginning work in process inventory (direct materials) $ 1,300 Direct materials added during the month 28,900 QS 3-18 Weighted average: Computing equivalent units and cost per EUP (direct materials) LO C2, C3 Using the weighted-average method, compute the molding department’s (a) equivalent units of production for materials and (b) cost per equivalent unit of production for materials for the month. (Round "cost per equivalent unit of production" to 2 decimal places.) 12. QS 3-19 Weighted average: Assigning costs to output LO C3 Using the weighted-average method, assign direct materials costs to the molding department’s output—specifically, the units transferred out to the packaging department and the units that remain in process in the molding department at month-end. (Do not round intermediate calculations.) 13. QS 3-20 Transfer of costs; ending WIP balances LO C3 Azule Co. manufactures in two sequential processes, cutting and binding. The two departments report the information below for a recent month. Cutting Binding Beginning work in process Transferred in from cutting dept. $ 1,700 Direct materials $ 1,170 2,286 Conversion 3,650 3,750 Costs added during March Direct materials $ 12,140 $ 9,208 Conversion 19,350 20,075 Transferred in from cutting dept. 22,240 Transferred to finished goods 43,000 Determine the ending balances in the Work in Process Inventory accounts of each department. 14. Use the following information for the Quick Study below. [The following information applies to the questions displayed below.] BOGO Inc. has two sequential processing departments, roasting and mixing. At the beginning of the month, the roasting department has 2,720 units in inventory, 70% complete as to materials. During the month, the roasting department started 20,400 units. At the end of the month, the roasting department had 4,200 units in ending inventory, 80% complete as to materials. Cost information for the roasting department for the month is as follows: Beginning work in process inventory (direct materials) $ 3,970 Direct materials added during the month 39,900 QS 3-21A FIFO: Computing equivalent units and cost per EUP (direct materials) LO C4 Using the FIFO method, compute the roasting department’s (a) equivalent units of production for materials and (b) cost per equivalent unit of production for materials for the month. 15. QS 3-22A FIFO: Assigning costs to output LO C4 Using the FIFO method, assign direct materials costs to the roasting department’s output—specifically, the units transferred out to the mixing department and the units that remain in process in the roasting department at month-end. (Do not round intermediate calculations.) 16. QS 3-23 Recording costs of materials LO P1 Hotwax makes surfboard wax in a single operation. This period, Hotwax purchased $78,000 in raw materials. Its production department requisitioned $57,500 of those materials for use in production. Prepare journal entries to record its purchase of raw materials and direct materials. 17. QS 3-24 Recording costs of labor LO P2 Prepare journal entries to record the following production activities for Hotwax. Incurred direct labor of $235,000 (credit Factory Payroll Payable). Incurred indirect labor of $19,500 (credit Factory Payroll Payable). Total factory payroll of $254,500 was paid in cash. 18. QS 3-25 Recording costs of factory overhead LO P1, P3 Prepare journal entries to record the following production activities for Hotwax. Requisitioned $12,900 of indirect materials for use in production of surfboard wax. Incurred $172,000 overhead costs (credit Other accounts). Applied overhead at the rate of 150% of direct labor costs. Direct labor costs were $185,000. 19. QS 3-26 Recording transfer of costs to finished goods LO P4 Hotwax completed products costing $390,000 and transferred them to finished goods. Prepare its journal entry to record the transfer of units from production to finished goods inventory.

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