QUESTION A: Process costing

Read problem 17-30 on page 728 (also included below)

Weighted-average method. McKnight Handcraft is a manufacturer of picture frames for large retailers. Every picture frame passes through two departments: the assembly department and the finishing department. This problem focuses on the assembly department. The process-costing system at McKnight has a single direct-cost category (direct materials) and a single indirect-cost category (conversion costs). Direct materials are added when the assembly department process is 10% complete. Conversion costs are added evenly during the assembly department's process.

McKnight uses the weighted-average method of process costing. Consider the following data for the assembly department in April 2017:

Physical UnitDirectConversion

(Frames)MaterialsCosts

Work in Process, April 1[1]60$1,530$156

Started during April 2017510

Completed during April 2017450

Work in process April 30[2]120

Total costs added during April 2017$17,850$11,544

Required:

1.Prepare a production worksheet for McKnight Corp. using the weighted average method of process costing. A blank copy of the worksheet is attached to the back of this document. (show calculations):

Hints:

Draw a T account of WIP(units): While production info in units is given here, sometimes it helps to make a T account to illustrate units in beginning inventory, ending inventory, started and completed. (you may get a question where one of the numbers is missing and you need to calculate it)

Degree of completion: in this question you are given the % completion of direct materials (DM). It did not need to be given. If you know that direct materials are added at the beginning of the process, all units in beginning inventory will have 100% of DM added and all units in ending inventory will have 100% of DM added the journal entries that affect the work-in-process, Assembly account for April. Show the WIP T-accounts for Assembly and Finishing.

[1] Degree of completion: direct materials, 100%; conversion costs, 40%

[2] Degree of completion: direct materials, 100%; conversion costs, 15%