McKnight Handcraft is a manufacturer of picture frames for large retailers. Every picture frame passes through two departments: the assembly department and the finishing department. This problem focuses on the assembly department. The process-costing system at McKnight has a single direct-cost category (direct materials) and a single indirect-cost category (conversion costs). Direct materials are added when the assembly department process is 10% complete. Conversion costs are added evenly during the assembly department's process.

McKnight uses the weighted-average method of process costing. Consider the following data for the assembly department in April 2017:

Required:
1. Summarize the total assembly department costs for April 2017, and assign them to units completed (and transferred out) and to units in ending work in process.
2. What issues should a manager focus on when reviewing the equivalent units calculation?

Transcribed Image Text:

Physical Unit (Frames) 60 510 Direct Materials $1,530 Conversion Costs $ 156 Work in process, April 1 Started during April 2017 Completed during April 2017 Work in process, April 30b Total costs added during April 2017 120 $17,850 $11,544