CHAPTER 3 Make Decisions at Current Designs Topic: Process Costing Excel Functions and Tools: SUM Function and Single Cell-Referencing Building a kayak using the composite method is a very labor-intensive process. In the fabrication department, the kayaks go through several steps as employees carefully place layers of Kevlar in a mold and then use resin to fuse together the layers. The excess resin is removed with a vacuum process, and the upper shell and lower shell are removed from the molds and assembled. The seat, hatch, and other components are added in the finishing department. At the beginning of April, Current Designs had 30 kayaks in process in the fabrication department. Rick Thrune, the production manager, estimated that about 80% of the material costs had been added to these boats, which were about 50% complete with respect to the conversion costs. The cost of this inventory had been calculated to 6be $8,400 in materials and $9,000 in conversion costs. 7 During April, 72 boats were started. At the end of the month, the 35 kayaks in the 8 ending inventory had 20% of the materials and 40% of the conversion costs already 9 added to them. 0 A review of the accounting records for April showed that materials with a cost of 1 $17,500 had been requisitioned by this department and that the conversion costs for the month were $39,600. 2 3 4 25 26 27 Required Use sheet tab Part 1. 1. Complete a production cost report for April 2017 for the fabrication department using the weighted average method. 28 WHAT-IF? 29 2. Perform what-if analysis to answer the following independent questions: 30 31 32 33 23 34 35 36 a. By how much will the ending work in process inventory change if there are only 32 kayaks in process at April 30? What factors caused the change? b. By how much will the cost of ending work in process inventory increase if the original 35 kayaks have only 10% of the materials and 20% of the conversion costs complete? What effect will this have on income if all completed kayaks are sold in April