On 1 April 2022, Fridges Ltd had 1,600 units of work-in-process in the Assembly Department, the final state of their production process, which were 80% complete with respect to materials and 40% complete for conversion.
The costs attached to these 1,600 units were as follows:
Transferred-in from the Machining Department: $560,100
Material costs added in the Assembly Department: $57,600
Conversion costs added in the Assembly Department: $70,405
During April, the following occurred:
Transferred-in from the Machining Department: 8,800 units at a cost of $3,298,300
Material costs added in the Assembly Department: $417,120
Conversion costs added in the Assembly Department: $905,570
On 30 April 2021, the Assembly Department has 1,700 units of work-in-process, which are 70% complete with respect to materials and 35% complete for conversion.
Required:
Complete the first two steps in preparing a process cost report for the Assembly Department.
(a) Step 1: Physical Flow Schedule for the Assembly Department in April 2022
Units to account for
Units accounted for
Beginning work-in-process
Completed and transferred out
Units transferred-in
Ending work-in-process
Total units to account for
Total units accounted for
(b) Step 2: Calculation of Equivalent Units for the Assembly Department in April 2022
Transferred-in
Materials
Conversion
Units completed
8,700
Ending work-in-process
1,700
Equivalent units
10,400
