Problem 2 (25 points) BabySafe, Inc. makes car seats in a local factory. It uses the...

Transcribed Image Text:

Problem 2 (25 points) BabySafe, Inc. makes car seats in a local factory. It uses the weighted average procens costing system. The factory has three departments Molding, Assembling and Finishing For the Aasembling Department vou lhave the following information: Work In Process on August 1. 10,000 units Cost transferred in from Molding Direct Materials costs Conversion costis $199,000 $328,800 183.000 100% complete 60% complete 40 complete Costs incurred in Aurant Transferred in from Molding Direct Materials Conversion Costa $4,284,000 $1,879,200 $450,000 102,000 unita were tranuferred in from Molding during August and 16,000 remained in endang work in peoces. The ending work in process was 100e complete for costs tranaferred in, 90% complete for direct msterialh and 50% complete for convenion costa. Required: For the Assembling Department caleulate the cost of goods transferred out in August to the Finishing department and the amount ofr 1. work in process remaining in assembly at the end ef August using the weighted average assumption. 2. Show how that reconcileE to the costs te account for. 'ou should use journal entries and T account Repeat the first two requirements using the FIFO assumption 3. Problem 2 (25 points) BabySafe, Inc. makes car seats in a local factory. It uses the weighted average procens costing system. The factory has three departments Molding, Assembling and Finishing For the Aasembling Department vou lhave the following information: Work In Process on August 1. 10,000 units Cost transferred in from Molding Direct Materials costs Conversion costis $199,000 $328,800 183.000 100% complete 60% complete 40 complete Costs incurred in Aurant Transferred in from Molding Direct Materials Conversion Costa $4,284,000 $1,879,200 $450,000 102,000 unita were tranuferred in from Molding during August and 16,000 remained in endang work in peoces. The ending work in process was 100e complete for costs tranaferred in, 90% complete for direct msterialh and 50% complete for convenion costa. Required: For the Assembling Department caleulate the cost of goods transferred out in August to the Finishing department and the amount ofr 1. work in process remaining in assembly at the end ef August using the weighted average assumption. 2. Show how that reconcileE to the costs te account for. 'ou should use journal entries and T account Repeat the first two requirements using the FIFO assumption 3.

Answer rating: 100% (QA)

Answer 1 Weighted Average Method Equivalent Unit Computation Flow of Equivalent Units Physical Transferred Direct Conversion Flow of Production Units in Materials Costs Units to account for Beginning ... View the full answer