Question

Carlberg Company has two manufacturing departments, assembly and painting. The assembly department started 12,100 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			Percent of Conversion
Beginning work in process		3,500			60	%		40	%
Units transferred out		10,500			100	%		100	%
Ending work in process		5,100			80	%		30	%

Beginning work in process inventory—Assembly dept	$	3,359 (consists of $1,902 for direct materials and $1,457 for conversion)
Costs added during the month:
Direct materials	$	19,968
Conversion	$	20,197

QS 16-17A FIFO: Journal entry to transfer costs LO P4

Required:
Prepare the November 30 journal entry to record the transfer of costs from the assembly department to the painting department. Use the FIFO method.

Required:

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.

Answer 1

Solution:

Carlberg Company
Assembly Department
Computation of Equivalent unit (FIFO)
Particulars	Physical units	Material	Conversion
Units to be accounted for:
Beginning WIP Inventory	3500
Units started this period	10500
Total unit to be accounted for	14000
Units Accounted for:
Units completed and transferred out
From beginning inventory Material - 40% Conversion - 60%	3500	1400	2100
Started and completed currently	5400	5400	5400
Transferred to finished goods	8900	6800	7500
Units in ending WIP Material - 80% Conversion - 30%	5100	4080	1530
Total units accounted for	14000	10880	9030

Carlberg Company
Assembly Department
Computation of Cost per Equivalent unit
Particulars	Total cost	Material	Conversion
Current period cost	$40,165.00	$19,968.00	$20,197.00
Equivalent units		10880	9030
Cost per equivalent unit		$1.84	$2.24

Carlberg Company
Assembly Department
Producton cost report - FIFO
Particulars	Total cost	Material	Conversion
Cost Accounted for :
Cost assigned to unit transferred out:
Cost from beginning WIP Inventory	$3,359	$1,902	$1,457
Current cost added to complete beginning WIP:
Material (1400*$1.84)	$2,569	$2,569
Conversion (2100 * $2.24)	$4,697		$4,697
Total Cost from beginning inventory	$10,625	$4,471	$6,154
Current cost of unit started and completed:
Material (5400*$1.84)	$9,911	$9,911
Conversion (5400*2.24)	$12,078		$12,078
Total cost of unit started and completed	$21,989	$9,911	$12,078
Total cost of unit transferred out	$32,614	$14,382	$18,232
Cost assigned to ending WIP:
Material (4080*$1.84)	$7,488	$7,488
Conversion (1530*$2.24)	$3,422		$3,422
Total ending WIP inventory	$10,910	$7,488	$3,422
Total cost accounted for	$43,524	$21,870	$21,654

Journal Entries - Carlberg Company
S. No.	Particulars	Debit	Credit
1	Work In Process - Painting Department Dr	$32,614.00
	To Work In Process - Assembly Department		$32,614.00
	(Being cost of goods completed in assembly transferred to Painting department)