Reference no: EM133272783

Process Costing through Two Departments

Hound Havens produces plastic doghouses as part of a continuous process through two departments: Molding and Finishing. Direct materials and conversion are added throughout the month in both departments, but at different rates. The information presented was compiled at the end of April.

Molding Department Finishing Department

Beginning Inventories (on April 1):

Physical units in production carried forward from March 31 2,800 5,000

Costs:

Transferred Molding costs carried forward from March 31 $125,000

Direct materials costs carried forward from March 31 $ 33,340 15,000

Conversion costs carried forward from March 31 11,180 6,000

Current Production (in April):

Units started during April 48,200 ?  

Units in ending inventories as of April 30 3,400 2,000

Costs:

Molding costs transferred to Finishing during April ?  

Direct materials costs incurred in April $669,200 $496,000

Conversion costs incurred in April 521,840 147,600

Percentage of Completion:

Inventories with respect to direct materials on April 1 90% 30%

Inventories with respect to conversion on April 1 30 40

Inventories with respect to direct materials on April 30 80% 25%

Inventories with respect to conversion on April 30 20 30

Instructions

Complete the following requirements for the Molding Department.

Show a schedule showing units started and completed in the Molding Department during April.

Compute the equivalent units of direct materials and conversion for the Molding Department in April.

Determine the cost per equivalent unit of input resource for the Molding Department during April.

Prepare the summary journal entry required to transfer units from the Molding Department to the Finishing Department during April.

Compute the costs assigned to ending inventory in the Molding Department on April 30.

Complete the following requirements for the Finishing Department.

Show a schedule showing units started and completed in the Finishing Department during April.

Compute the equivalent units of direct materials and conversion for the Finishing Department in April. Direct materials include both those transferred in from the Molding Department and those added by the Finishing Department.

Determine the cost per equivalent unit of input resource for the Finishing Department during April.

Show the summary journal entry required to transfer units from the Finishing Department to Finished Goods Inventory during April.

Compute the costs assigned to ending inventory in the Finishing Department on April 30.