Morrison Company manufactures various lines of bicycles. Because of the high volume of each line, the...

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Morrison Company manufactures various lines of bicycles. Because of the high volume of each line, the company employs a process costing system. Bicycle parts are manufactured and consolidated into a single bike unit in the molding department. Then, they are transferred to the assembly department where they are assembled into finished bikes. After assembly, the bicycles are sent to the packing department. For the current year, overhead is applied to production at the rate of $3.50 per direct labor dollar. For one product line, the current year's cost and production figures for the molding department (i.e., 1st department) are presented in the following schedules. Data Molding Department Cost Direct Material Direct Overhead Labor Cost of beginning inventory $13,500 00 Current period $10,500 $31,5 costs $242,000 $135,000 ???? Molding Department Production Data ------Percentage of completion- Bicycles Direct Material Conversion Beginning inventory 70% Started during the year Transferred out to Assembly 600 40% 5,400 5,200 100% Ending inventory 35% 100% ??? 85% There were no spoiled units discovered during the period. A. (9 points) Using the weighted average method, calculate the following items for the Molding Department in the current year. Show calculations to earn points. 1. Direct material cost per equivalent unit 2. Conversion cost per equivalent unit. Hint: Be sure to obtain the total conversion cost (i.e., direct labor plus overhead). 3. Cost of units completed and transferred out to the Assembly Department 4. Cost of ending Work-in-Process inventory by component (direct material and conversion) 5. Show the flow of costs through the WIP Inventory t-account of the Molding Department (i.e., the beginning inventory, all entries posted during the year, and the ending balance). B. (8 points) Using the FIFO method, calculate the following items for the Molding Department in the current year. Show calculations to earn points. 1. Direct material cost per equivalent unit 2. Conversion cost per equivalent unit 3. Cost of units completed and transferred out to the Assembly Department 4. Show the flow of costs through the WIP Inventory t-account of the Molding Department (i.e., the beginning inventory, all entries posted during the year, and the ending balance). Morrison Company manufactures various lines of bicycles. Because of the high volume of each line, the company employs a process costing system. Bicycle parts are manufactured and consolidated into a single bike unit in the molding department. Then, they are transferred to the assembly department where they are assembled into finished bikes. After assembly, the bicycles are sent to the packing department. For the current year, overhead is applied to production at the rate of $3.50 per direct labor dollar. For one product line, the current year's cost and production figures for the molding department (i.e., 1st department) are presented in the following schedules. Data Molding Department Cost Direct Material Direct Overhead Labor Cost of beginning inventory $13,500 00 Current period $10,500 $31,5 costs $242,000 $135,000 ???? Molding Department Production Data ------Percentage of completion- Bicycles Direct Material Conversion Beginning inventory 70% Started during the year Transferred out to Assembly 600 40% 5,400 5,200 100% Ending inventory 35% 100% ??? 85% There were no spoiled units discovered during the period. A. (9 points) Using the weighted average method, calculate the following items for the Molding Department in the current year. Show calculations to earn points. 1. Direct material cost per equivalent unit 2. Conversion cost per equivalent unit. Hint: Be sure to obtain the total conversion cost (i.e., direct labor plus overhead). 3. Cost of units completed and transferred out to the Assembly Department 4. Cost of ending Work-in-Process inventory by component (direct material and conversion) 5. Show the flow of costs through the WIP Inventory t-account of the Molding Department (i.e., the beginning inventory, all entries posted during the year, and the ending balance). B. (8 points) Using the FIFO method, calculate the following items for the Molding Department in the current year. Show calculations to earn points. 1. Direct material cost per equivalent unit 2. Conversion cost per equivalent unit 3. Cost of units completed and transferred out to the Assembly Department 4. Show the flow of costs through the WIP Inventory t-account of the Molding Department (i.e., the beginning inventory, all entries posted during the year, and the ending balance).