ABC inc.. has2 depart., assembly and finishing. The following information for March 2003 is available.
Two direct materials are added to the product in the assembly department. Raw material A is added at the beginning of the process. Raw material B is added when the units are 55% complete.
Beginning WIP 2,386 units (50% converted)
$11,092 Raw Material A
Raw Material B
$12,168 Conversion Costs
Started in March 30,735 units
Good units completed 30,593 units
Normal spoilage 213 units
Abnormal spoilage ? units
Ending WIP 2,269 units (35% converted)
March costs incurred in the Assembly Department
$143,856 Raw Material A
$167,407 Raw Material B
$258,369 Conversion Costs
Finishing: There is one additional direct material added to the product. It is added at when the units in the finishing department are 40% complete.
Beginning WIP 2,516 units (45% converted)
$88,060 Transferred in Costs
21,450 Direct Materials
$11,322 Conversion Costs
Good units completed 16,980 units
Normal spoilage 120 units
Abnormal spoilage 12 units
Ending WIP ? units (55% converted)
March costs incurred in the finishing department:
$140,245 Direct Materials
$185,598 Conversion Costs
a. Calculate equivalent units, cost per equivalent units and allocate all costs for the Assembly Department using weighted average process costing.
b. Record the journal entries required in Assembly using the numbers from "a".
c. Calculate equivalent units, cost per equivalent units and allocate all costs for both departments using FIFO process costing.