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:
|
Physical Unit (Frames) |
Direct Materials |
Conversion Costs |
|
|
Work in process, April 1a |
95 |
$ 1,665 |
$ 988 |
|
Started during April 2012 |
490 |
||
|
Completed during April 2012 |
455 |
||
|
Work in process, April 30b |
130 |
||
|
Total costs added during April 2012 |
$17,640 |
$11,856 |
Summarize total assembly department costs for April 2012, and assign total costs to units completed (and
transferred out) and to units in ending work in process.