Weighted Average Method, Journal Entries

Muskoge Company uses a process$-$costing system. The company manufactures a product that is

processed in two departments: Molding and Assembly. In the Molding Department, direct materials

are added at the beginning of the process; in the Assembly Department, additional direct materials

are added at the end of the process. In both departments, conversion costs are incurred uniformly

throughout the process. As work is completed, it is transferred out. The following table summarizes

the production activity and costs for February:

Current production:

Costs:

Percentage of completion: Feedback

b$.$ An equivalent units calculation

c$.$ Calculation of unit costs. Round your intermediate computations and final answer to four

decimal places.

$

per unit d$.$ Calculate the cost of ending work in process and cost of goods transferred out. Round your

answers to the nearest dollar.

Cost of ending work in process: $

Cost of goods transferred out: $$|$

e$.$ A cost reconciliation. When required, round your answers to the nearest dollar.

Costs to account for:

Check My Work

b$.$ To calculate equivalent units, weighted average counts prior$-$period output in BWIP as

belonging to the current period. All units are output in the current period.

c$.$ Unit cost $=$ Unit direct materials cost $+$ Unit conversion costs

d$.$ Costing out ending work in process is done by computing the cost of each input and

then adding to obtain the total. The valuation of cost of goods transferred out is simplified

as it is the total unit cost multiplied by the units completed.

e$.$ Reconciliation is making sure that the costs assigned to goods or services completed

and EWIP are equal to the costs to account for. Prepare journal entries that show the flow of manufacturing costs for the Molding Department.

$($a$)$ Materials are added at the beginning of the process, $($b$)$ conversion costs are recorded, and $($c$)$

units are transferred to the Assembly Department. When required, round your answers to the

nearest dollar.

a$.$

Work $in$ Process$-$Molding not$$

Materials Inventory

b$.$

Work $in$ Process$-$Molding $$

Conversion Costs$-$Control

c$.$

Feedback

Check My Work

An example of journal entries showing the flow of costs is illustrated above Exhibit $6\mathrm{.}5.$

Repeat Requirements $1$ and $2$ for the Assembly Department.

a$.$ A physical flow schedule:

Assembly Department, Physical flow schedule:

Units to account for:

Units, beginning work in process $$

Units started in February $($transferred in$)$

Total units to account for

Units accounted for:

Units completed and transferred out:

Started and completed $$

From beginning work in process $$

Units, ending work in process $$

Total units accounted forb. An equivalent units calculation

Total Equivalent Units

Direct Materials

Conversion Costs

Transferred In

c$.$ Calculate the total unit costs. Round your intermediate computations and final answer to

four decimal places.

$$,$ per unit

d$.$ Calculate the cost of ending work in process and cost of goods transferred out. Round your

answers to the nearest dollar.

Cost of ending work in process: $

Cost of goods transferred out: $

e$.$ A cost reconciliation. If required, round your answers to the nearest dollar.

Costs to account for:

Costs accounted for:

Transferred out

Note: Cost reconciliation totals differ due to rounding error.

Feedback

Check My Work

Read the problem carefully. There are some differences in how the material additions

are accounted for.