Question

Gannett Handcraft is a manufacturer of picture frames for large retailers. Every picture frame passes through...

Gannett Handcraft is a manufacturer of picture frames for large retailers. Every picture frame passes through two? departments: the assembly department and the finishing department. This problem focuses on the assembly department. The? process-costing system at Gannett has a single? direct-cost category? (direct materials) and a single? indirect-cost category? (conversion costs). Direct materials are added when the assembly department process is? 10% complete. Conversion costs are added evenly during the assembly? department's process. Gannett uses the? weighted-average method of process costing.

Consider the following data for the assembly department in April 2017?:

 Physical units (frames) Direct Materials Conversion costs work in process April 1 a 95 1665 988 started during April 2017 490 completed during April 2017 455 Work in process April 30b 130 Total costs added during April 2017 17,640 11,856 a. degree of completion: direct materials 100%; conversion costs 40% b. degree of completion: direct materials 100%; conversion costs, 30%
 1. Summarize total assembly department costs for April 2017 and assign them to units completed? (and transferred? out) and to units in ending work in process. Begin by calculating the physical units and equivalent units. Summarize total costs to account for. Next calculate cost per equivalent unit for direct materials and conversion costs. Finally assign total costs to units completed (and transferred out) and to units in ending work in process Please show work and calculations.

Equivalent unit :

 Whole unit % EUP-material % EUP-conversion Unit completed and transferred out 455 100% 455 100% 455 Ending work in process 130 100% 130 30% 39 Total equivalent unit 585 585 494

Calculate cost per equivalent unit :

 material Conversion Beginning work in process 1665 988 Cost added during period 17640 11856 Total cost 19305 12844 Equivalent unit 585 494 Cost per equivalent unit 33 26

Cost assigned :

 material Conversion Total Cost of units completed and transferred out 455*33 = 15015 455*26 = 11830 26845 Cost of ending work in process 130*33 = 4290 39*26 = 1014 5304