MacLean Handcraft is a manufacturer of picture framesfor large retailers. Every picture frame passes through two?departments: the assembly department and the finishing department.This problem focuses on the assembly department. The?process-costing system at MacLean has a single? direct-costcategory? (direct materials) and a single? indirect-cost category?(conversion costs). Direct materials are added when the assemblydepartment process is?10% complete. Conversion costs are addedevenly during the assembly? department's process. MacLean uses the?weighted-average method of process costing. Consider the followingdata for the assembly department in April 2017?:
| Physical Units (frames) | Direct Materials | Conversion Costs |
| Work in process, April 1^a | 120 | $ 2,140 | $ 2,916 |
| Started during April 2017 | 485 | | |
| Completed during April 2017 | 445 | | |
| Work in process, April 30^b | 160 | | |
| Total costs added during April 2017 | | $18,430 | $ 9,315 |
a Degree of? completion: direct? materials, 100%; conversion?costs, 40%.
b Degree of? completion: direct? materials, 100?%; conversion?costs, 55?%
Question:
1. | Summarize total assembly department costs for April 2017?, andassign them to units completed? (and transferred? out) and to unitsin ending work in process. |
2. | What issues should a manager focus on when reviewing theequivalent units?calculation? |
