Question

A company that makes baseball gloves produces them using 2 production departments. When the gloves are produced they first go through the Fabrication Department, which produces the pieces that are later assembled into a glove. After the Fabrication Department completes its work on the glove, the glove goes to the Assembly Department to finish putting the glove together.

The following data is for the Assembly Department (the second department that works on the gloves) for the month of November:

Units in the beginning work-in-process inventory                                                9,000

Units started during the month                                                                            51,000

Units completed during the month and transferred to Finished Goods              52,000

Units in the ending work-in-process inventory                                                    8,000

Units in the ending work-in-process inventory are 75% completed in terms of direct materials and 45% completed in terms of conversion costs  

Costs in the beginning work-in-process inventory - $45,000 of costs transferred in from the Fabrication Department, $55,000 of direct materials costs, and $70,000 of conversion costs

Costs added in the month of November - $255,000 of costs transferred in from the Fabrication Department, $293,000 of direct materials costs, and $319,200 of conversion costs

Please complete the 5 steps of involved in process costing:

Account for all the units

Calculate the number of equivalent units in terms of transferred-in costs, direct materials and conversion costs

Calculate the amounts spent on transferred-in costs, direct materials and conversion costs

Calculate the cost per equivalent unit for transferred-in costs, direct materials and conversion costs

Allocate the total amount spent between the cost of goods completed (transferred to Finished Goods) and the cost assigned to the ending work-in-process inventory.

Answer 1

Assembly department:
	Phy units	Transf In	D Material	Conversion	Total
B WIP (on weighted avg. basis)	9000	9000	9000	9000
Started and completed	43000	43000	43000	43000
transf out	52000
C WIP	8000	8000	6000	3600
Equivalent units		60000	58000	55600
Total cost:
B wip		45000	55000	70000
Incurred in month		255000	293000	319200
Total cost		300000	348000	389200	$1037200
Cost per Eq unit		5	6	7
Cost of Transf. out		260000	312000	364000	936000
Cost of C WIP		40000	36000	25200	101200
TOTAL COST:					$1037200