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.

Homework Answers

Answer #1

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
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