Boy Kingdom, manufactures educational toys using both Weighted Average and FIFO Method in process costing systems....

 

 

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Boy Kingdom, manufactures educational toys using both Weighted Average and FIFO Method in process costing systems. Plastic is molded into the appropriate shapes in the Molding Department. Molded components are transferred to the Assembly Department where the toys are assembled and additional materials (for example, fasteners and decals) are applied. Completed toys are then transferred to the Packaging Department where each toy is boxed. Toy Kingdom, showed the following data on toy production for February: Inventory Costing Method MOLDING (Weighted Ave) FIFO ASSEMBLY PACKAGING FIFO Beg. Inventory: Units 500 Prior Department Materials Costs 25,000 Conversion Costs 10,500 150 19,590 3,750 2,250 Started or Transferred in: Units 500 ? 300 February Costs: Prior Department ? ? Materials 50,000 4,876 24,075 Conversion Costs 76,600 11,660 29,775 Completed & Transferred Units? ? Ending Inventory in Units 200 300 50 Inspection Point Beginning of the process 50% 50% 10% % Normal Lost During the process 100 units Beginning and ending work in process for the three departments showed the following degree of completion: Materials application MOLDING ASSEMBL PACKAGING Y Beg. Of the End of the process Process Materials Application: 40% beg. Of the process, add'l 40% upon 60% completion and the balance after inspection. 80% Degree of Completion In-Process Beg. 30% Degree of Completion In-Process End. 80% 60% Work in Process - End 80% completion. Prepare Departmental Cost of Production Report, showing the quantity schedule & equivalent production in units, Computation of Unit Costs, Reconciliation of Cost. Boy Kingdom, manufactures educational toys using both Weighted Average and FIFO Method in process costing systems. Plastic is molded into the appropriate shapes in the Molding Department. Molded components are transferred to the Assembly Department where the toys are assembled and additional materials (for example, fasteners and decals) are applied. Completed toys are then transferred to the Packaging Department where each toy is boxed. Toy Kingdom, showed the following data on toy production for February: Inventory Costing Method MOLDING (Weighted Ave) FIFO ASSEMBLY PACKAGING FIFO Beg. Inventory: Units 500 Prior Department Materials Costs 25,000 Conversion Costs 10,500 150 19,590 3,750 2,250 Started or Transferred in: Units 500 ? 300 February Costs: Prior Department ? ? Materials 50,000 4,876 24,075 Conversion Costs 76,600 11,660 29,775 Completed & Transferred Units? ? Ending Inventory in Units 200 300 50 Inspection Point Beginning of the process 50% 50% 10% % Normal Lost During the process 100 units Beginning and ending work in process for the three departments showed the following degree of completion: Materials application MOLDING ASSEMBL PACKAGING Y Beg. Of the End of the process Process Materials Application: 40% beg. Of the process, add'l 40% upon 60% completion and the balance after inspection. 80% Degree of Completion In-Process Beg. 30% Degree of Completion In-Process End. 80% 60% Work in Process - End 80% completion. Prepare Departmental Cost of Production Report, showing the quantity schedule & equivalent production in units, Computation of Unit Costs, Reconciliation of Cost.