Question

Jackson Company is a manufacturer of rocking chairs. Each chair passes through the assembly department and finishing department. This problem focuses on the assembly department. Direct materials are added at the beginning of the process. Conversion costs are added evenly during the assembly department’s process. As work in assembly is completed, each unit is immediately transferred to finishing. Jackson Company uses the weighted- average method of process costing. Data for the assembly department for October 2012 are as follows:



1. What is the percentage of completion for
(a) Direct materials in beginning work- in- process inventory, and
(b) Direct materials in ending work- in- process inventory?
2. What issues should the manager focus on when reviewing the equivalent- units calculation?
3. For each cost category, compute equivalent units in the assembly department. Show physical units in the first column of your schedule.
4. For each cost category, summarize total assembly department costs for October 2012, calculate the cost per equivalent unit, and assign total costs to units completed ( and transferred out) and to units in ending work inprocess.


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  • CreatedJanuary 15, 2015
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