Response to the following problem:
Plaid-Clad manufactures golf bags in a two-department process: Assembly and Finishing. The Assembly Department uses weighted average costing; the percentage of completion of overhead in this department is unrelated to direct labor. The Finishing Department adds hardware to the assembled bags and uses FIFO costing; overhead is applied in this department on a direct labor basis. For June, the following production data and costs were gathered:
|
Assembly Department: Units
|
|
|
|
Beginning WIP Inventory (100% complete for DM;
|
|
250
|
|
40% complete for DL; 30% complete for OH)
|
|
|
|
Units started
|
|
8,800
|
|
Ending WIP Inventory (100% complete for DM;
|
|
400
|
|
70% complete for DL; 90% complete for OH)
|
|
|
|
Assembly Department: Costs
|
DM
|
DL
|
OH
|
Total
|
|
Beginning WIP Inventory
|
$ 3,755
|
$ 690
|
$ 250
|
$ 4,695
|
|
Current period
|
100,320
|
63,606
|
27,681
|
191,607
|
|
Total costs
|
$104,075
|
$64,296
|
$27,931
|
$196,302
|
|
Finishing Department: Units
|
|
|
|
Beginning WIP Inventory (100% complete for transferred in;
|
|
100
|
|
15% complete for DM; 40% complete for conversion)
|
|
|
|
Units transferred in
|
|
8,650
|
|
Ending WIP Inventory (100% complete for transferred in;
|
|
200
|
|
30% complete for DM; 65% complete for conversion)
|
|
|
|
Finishing Department: Costs
|
Transferred In
|
DM
|
Conversion
|
Total
|
|
Beginning inventory
|
$ 2,176
|
$ 30
|
$ 95
|
$ 2,301
|
|
Current period
|
188,570
|
15,471
|
21,600
|
225,641
|
|
Total costs
|
$190,746
|
$15,501
|
$21,695
|
$227,942
|
Required:
a. Prepare a cost of production report for the Assembly Department.
b. Prepare a cost of production report for the Finishing Department.
c. Prepare T-accounts to show the flow of costs through the Assembly and Finishing Departments.
d. Prepare the journal entries for the Finishing Department for June.