Plaid Clad manufactures golf bags in a two department process: Assembly and Finishing. The Assembly Department uses weighted average costing; the percentage of completion of overhead in this department is unrelated to direct labor. The Finishing Department adds hardware to the assembled bags and uses FIFO costing; overhead is applied in this department on a direct labor basis. For June, the following production data and costs were gathered:
|
Assembly Department: Units |
|
|
||||
|
Beginning WIP Inventory (100% complete for DM; |
|
250 |
||||
|
40% complete for DL; 30% complete for OH) |
|
|
||||
|
Units started |
|
8,800 |
||||
|
Ending WIP Inventory (100% complete for DM; |
|
400 |
||||
|
70% complete for DL; 90% complete for OH) |
|
|
||||
|
Assembly Department: Costs |
DM |
DL |
OH |
Total |
||
|
Beginning WIP Inventory |
$ 3,755 |
$ 690 |
$ 250 |
$ 4,695 |
||
|
Current period |
100,320 |
63,606 |
27,681 |
191,607 |
||
|
Total costs |
$104,075 |
$64,296 |
$27,931 |
$196,302 |
||
|
Finishing Department: Units |
|
|
||||
|
Beginning WIP Inventory (100% complete for transferred in; |
|
100 |
||||
|
15% complete for DM; 40% complete for conversion) |
|
|
||||
|
Units transferred in |
|
8,650 |
||||
|
Ending WIP Inventory (100% complete for transferred in; |
|
200 |
||||
|
30% complete for DM; 65% complete for conversion) |
|
|
||||
|
Finishing Department: Costs |
Transferred In |
DM |
Conversion |
Total |
||
|
Beginning inventory |
$ 2,176 |
$ 30 |
$ 95 |
$ 2,301 |
||
|
Current period |
188,570 |
15,471 |
21,600 |
225,641 |
||
|
Total costs |
$190,746 |
$15,501 |
$21,695 |
$227,942 |
||
Required:
a. Prepare a cost of production report for the Assembly Department.
b. Prepare a cost of production report for the Finishing Department.
c. Prepare T accounts to show the flow of costs through the Assembly and Finishing Departments.
d. Prepare the journal entries for the Finishing Department for June.