Financial & Managerial Accounting 17th Edition by Jan Williams ,Susan Haka,Mark Bettner,Joseph Carcello

تمرين 19

Thompson Tools produces dampers in a continuous process through two departments: Assembly and Packaging. All direct materials are added at the beginning of the process in the Assembly Department, whereas all direct materials are added at the end of the process in the Packaging Department. Conversion costs are incurred uniformly over time in both departments. As units are completed in the Assembly Department, they are transferred to the Packaging Department. The costs associated with the transferred units are included in the computation of the Packaging Department s total costs. The information presented below was compiled at the end of March:
Instructions
a. Complete the following requirements for the Assembly-Department:
1. Prepare a schedule showing units started and completed in the Assembly Department during March.
2. Compute the equivalent units of direct materials and conversion for the Assembly Department in March.
3. Determine the cost per equivalent unit of input resource for the Assembly Department during March.
4. Prepare the summary journal entry required to transfer units from the Assembly Department to the Packaging Department during March.
5. Compute the costs assigned to ending inventory in the Assembly Department on March 31.
b. Complete the following requirements for the Packaging Department:
1. Prepare a schedule showing units started and completed in the Packaging Department during March.
2. Compute the equivalent units of direct materials and conversion for the Packaging Department in March. Direct materials include both those transferred in from the Assembly Department and those added by the Packaging Department.
3. Determine the cost per equivalent unit of input resource for the Packaging Department during March.
4. Prepare the summary journal entry required to transfer units from the Packaging department to Finished Goods Inventory during March.
5. Compute the costs assigned to ending inventory in the Packaging Department on March 31.