Weighted-average method. Ashworth Handcraft is a manufacturer of picture frames for large retailers. Every picture frame passes
Question:
Weighted-average method. Ashworth 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 Ashworth 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.
Ashworth uses the weighted-average method of process costing. Consider the following data for the assembly
department in April 2012:
Required:
Summarize total assembly department costs for April 2012, and assign total costs to units completed (and Required
transferred out) and to units in ending work in process.
Managerial Accounting Decision Making and Motivating Performance
ISBN: 978-0137024872
1st edition
Authors: Srikant M. Datar, Madhav V. Rajan