Off Road manufactures auto roof racks in a two-stage process that includes shaping and plating. Steel alloy is the basic raw material of the shaping process. The steel is molded according to the design specifications of automobile manufacturers. The Plating Department then adds an anodized finish.
At March 31, before recording the transfer of cost from the Plating Department to Finished Goods Inventory, the Off Road general ledger included the following account.
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Transferred in from Shaping Direct materials added
Transferred out to FG
2,000 racks completed and transferred out
1,600 racks started, but not completed
Additional data
The direct materials (rubber pads) are added at the end of the plating process. Conversion costs are incurred evenly throughout the process. Work in process of the Plating Department on March 1 consisted of 1,800 racks. The $34,400 beginning balance of Work in Process - Plating includes $20,400 of transferred-in cost and $14,000 of conversion cost. During March, 1,800 racks were transferred in from the Shaping Department. The Plating Department transferred 2,000 racks to Finished Goods Inventory in March, and 1,600 were still in process on March 31. This ending inventory was 50% of the way through the plating process.
Requirement 2. Prepare the March production cost report for the Plating Department.
Before we can start the production cost report we must first compute the Plating Department's equivalent units. (For entries with a zero balance, make sure to enter "0" in the appropriate input field.)
Plating Department
Equivalent Unit Computations (Weighted Average)
Month Ended March 31
Flow of Production
Units accounted for:
Completed and transferred out
Total equivalent units
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Requirements
1. Fill in the time line for the Plating Department.
2. Prepare the March production cost report for the Plating Department.
3. Journalize all transactions affecting the Plating Department during March, including the entries that have already been posted. Assume the wages are unpaid.
T-account
Flow of Equivalent Units
Physical Transferred- Direct Conversion
Units in Materials Costs
Work in Process Inventory - Plating
March 1 balance 34,400
Transferred in from Shaping 40,800
Direct materials 30,000
Direct labor 21,500
Manufacturing overhead 28,900
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