Abby Electronics makes DVD players in three processes: assembly, programming, and packaging. Direct materials are added at the beginning of the assembly process. Conversion costs are incurred evenly throughout the process. The Assembly Department had no Work-in-Process Inventory on October 31. In mid-November, Abby Electronics started production on 101,000 DVD players. Of this number, 76,900 DVD players were assembled during November and transferred out to the Programming Department. The November 30 Work-in-Process Inventory in the Assembly Department was 35% of the way through the assembly process. Direct materials costing $375,720 were placed in production in Assembly during November, direct labor of $157,500 was assigned, and manufacturing overhead of $98,505 was allocated to that department.
Requirements
1. Prepare a production cost report for the Assembly Department for November.
2. Prepare a T-account for Work-in-Process Inventory—Assembly to show its activity during November, including the November 30 balance.