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:
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Required
Summarize total assembly department costs for April 2012, and assign total costs to units completed (and transferred out) and to units in ending work inprocess.