Koy Kingdom, manufactures educational toys using both Weighted Average and FIFO Method in process costing systems. Plastic is molded into the appropriate shapes in the Molding Department. Molded components are transferred to the Assembly Department where the toys are assembled and additional materials (for example, fasteners and decals) are applied. Completed toys are then transferred to the Packaging Department where each toy is boxed.
Toy Kingdom, showed the following data on toy production for February:
|
|
MOLDING |
ASSEMBLY |
PACKAGING |
|
Inventory Costing Method |
(Weighted Ave) |
FIFO |
FIFO |
|
Beg. Inventory: |
|
|
|
|
Units |
500 |
|
150 |
|
Prior Department |
|
|
19,590 |
|
Materials Costs |
25,000 |
|
3,750 |
|
Conversion Costs |
10,500 |
|
2,250 |
|
Started or Transferred in: |
|
|
|
|
Units |
500 |
? |
300 |
|
February Costs: |
|
|
|
|
Prior Department |
– |
? |
? |
|
Materials |
50,000 |
4,876 |
24,075 |
|
Conversion Costs |
76,600 |
11,660 |
29,775 |
|
Completed & Transferred Units |
? |
? |
|
|
Ending Inventory in Units |
200 |
300 |
50 |
|
Inspection Point |
End of the process |
During the process, have not yet reach point of inspection |
Inspection point at the beginning of the process |
|
% Normal Lost |
During the process, without indication of inspection |
50 units |
10% |
Beginning and ending work in process for the three departments showed the following degree of completion:
|
|
MOLDING |
ASSEMBLY |
PACKAGING |
|
Materials application |
50% beginning of the process and 50% at the end. |
Application of materials, after inspection |
Materials Application: 50% beg. Of the process, add’l 50% evenly throughout the process. |
|
Degree of Completion In-Process Beg. |
50% |
? |
80% |
|
|
|
|
|
|
Degree of Completion In-Process End. |
80% |
60% |
Work in Process – End 80% completion. |
|
|
|
|
Prepare Departmental Cost of Production Report, showing the quantity schedule & equivalent production in units, Computation of Unit Costs, Reconciliation of Cost.`
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