We produce picture frames for stores such as Michael’s and HobbyLobby. In the assembly department, the wooden slats are added atthe beginning of the process, and the glass is added when theprocess is 25% complete. Conversion costs are added evenlythroughout the period. Here is the data related to the assemblydepartment for November 2018:
WIP, November 1 (40% complete) 60 frames
Started in November 500 frames
WIP, November 30 (15% complete) 100 frames
Costs included in the Beginning WIP:
DM - wooden slats $ 300
DM - glass $ 180
CC $ 168
Costs added during November:
DM - wooden slats $ 2,950
DM - glass $ 1,500
CC $ 3,580
Note: When calculating equivalent units (Step 2), total costs(Step 3), and cost per equivalent unit (Step 4), you will have 3columns - DM slats, DM glass, and CC. Therefore, when you assigncosts in Step 5, you’ll assign all 3 costs for each layer.
Using Weighted Average:
a. Prepare T-accounts for WIP in units and in $ to representthis situation.
b. Prepare the 5-step Production Cost Report.
c. Update the T-accounts to reflect the amounts transferred outand the amounts in Ending WIP.
