Steps in Preparing a Production Report

Recently, Stillwater Designs expanded its market by becoming an original equipment supplier to Jeep Wrangler. Stillwater Designs produces factory upgraded speakers specifically for Jeep Wrangler. The Kicker components and speaker cabinets are outsourced with assembly remaining in house. Stillwater Designs assembles the product by placing the speakers and other components in cabinets that define an audio package upgrade and that can be placed into the Jeep Wrangler, producing the desired factory-installed appearance. Speaker cabinets and associated Kicker components are added at the beginning of the assembly process.

Assume that Stillwater Designs uses the weighted average method to cost out the audio package. The following are cost and production data for the assembly process for April:

Production:
Units in process, April 1, 60% complete		60,000
Units completed and transferred out		150,000
Units in process, April 30, 20% complete		30,000
Costs:
WIP, April 1:
	Cabinets	$1,200,000
	Kicker components	12,600,000
	Conversion costs	5,400,000
Costs added during April:
	Cabinets	$2,400,000
	Kicker components	25,200,000
	Conversion costs	8,640,000

Required:

1. Prepare a physical flow analysis for the assembly department for the month of April.

Assembly Department
Physical Flow Analysis
For the Month of April
Units to account for:
Units in beginning work in process
Units started during the period
Total units to account for
Units accounted for:
Units completed and transferred out:
Started and completed
From beginning work in process
Units in ending work in process
Total units accounted for

2. Calculate equivalent units of production for the assembly department for the month of April.

Cabinets	equivalent units
Components	equivalent units
Conversion	equivalent units

3. Calculate unit cost for the assembly department for the month of April.

	Per Unit
Cabinets	$
Components	$
Conversion	$
Total	$

4. Calculate the cost of units transferred out and the cost of EWIP inventory.

Cost of units transferred out	$
Cost of ending work in process	$

Feedback

2. You must adapt the format because there are two different types of materials.

4. Adapt the calculation because there are two different types of materials.

5. Prepare a cost reconciliation for the assembly department for the month of April.

Assembly Department
Cost Reconciliation
For the Month of April
Costs to account for:
Beginning work in process	$
Incurred during April
Total costs to account for	$
Costs accounted for:
Goods transferred out	$
Goods in ending work in process
Total costs accounted for	$