Sue Electronics makes CD players in three processes: programming, and packaging. Direct materials are added at the beginning of
the assembly process. Conversion costs are incurred evenly throughout
the process. The Assembly Department had no work in process on March 31.
In mid – April, Sue Electronics started production on 100,000 CD
players. Of this number, 76100 CD players were assembled during April
and transferred out to the Programming Department. The April 30 work in
process in the Assembly Department was 40% of the way through the
assembly process. Direct materials costing $375,720 were positioned in
production in Assembly during April, and direct labor of $157,700 and
manufacturing overhead of $98,595 were assigned to that department.
Requirements
1. Draw a time line for the Assembly Department.
2. Use the time line to assist you computes the number of equivalent
units and the cost per equivalent unit in the Assembly Department for
April.
3. Assign total costs in the Assembly Department to (a)
units completed and transferred to Programming during April and (b)
units still in process at April 30.
4. Prepare a T – account
for Work in Process Inventory – Assembly to show its activity during
April, including the April 30 balance.