Question

# Carlberg Company has two manufacturing departments, assembly and painting. The assembly department started 12,100 units during...

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.

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)

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