Problem 2 (25 points)

BabySafe, Inc. makes car seats in a local factory. It uses the weighted average process costing system. The factory has three departments: Molding, Assembling and Finishing. For the Assembling Department you have the following information:

Work In Process on August 1: 10,000 units

Cost transferred in from Molding $199,000 100% complete

Direct Materials costs $328,800 60% complete

Conversion costs 183,000 40% complete

Costs incurred in August:

Transferred in from Molding $4,284,000

Direct Materials $1,879,200

Conversion Costs $ 450,000

102,000 units were transferred in from Molding during August and 16,000 remained in ending work in process.

The ending work in process was 100% complete for costs transferred in, 90% complete for direct materials and 50% complete for conversion costs.

Required:

1. For the Assembling Department calculate the cost of goods transferred out in August to the Finishing department and the amount of work in process remaining in assembly at the end of August using the weighted average assumption.
2. Show how that reconciles to the costs to account for. (You should use journal entries and T accounts)
3. Repeat the first two requirements using the FIFO assumption.