Question: Hello! There's nothing missing from this data. It's all that came with the practice questions. Please dont flag :( An electronics company purchases component parts
Hello! There's nothing missing from this data. It's all that came with the practice questions. Please dont flag :( An electronics company purchases component parts and assembles and tests them for subsequent resale and ultimate use in large pieces of equipment. The company has two processes - assembly and testing. Raw materials are put in process at the beginning of the assembly process, and no material is added during testing. Labor costs are uniformly utilized throughout both processes, and overhead costs are applied at the rate of one-third of labor costs. The manufacturing process is sequential; after assembly, all goods are transferred to the testing department and finally to finished goods inventory. Production data are as follows: Assembly Department Units WIP, beginning (materials 100% complete, labor and overhead 75% complete) 6,000 Started in process 80,000 Completed and transferred out 78,000 WIP, ending (materials 100% complete, labor and overhead 85% complete) 8,000 Materials Direct Labor Overhead WIP, beginning P 4,000 P 6,000 P 2,000 Current period costs 55,340 86,220 28,740 Testing Department Units WIP, beginning (materials 100% complete, labor and overhead 60% complete) 7,000 Transferred-in from Assembly Department 78,000 Completed and transferred to finished goods 80,000 WIP, ending (materials 100% complete, labor and overhead 70% complete) 5,000 Trans-in Labor & OH WIP, beginning P 9,880 P 12,120 Current period costs ? 315,200 REQUIRED: Prepare cost of production reports for both departments using: a. Weighted average method b. FIFO method
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