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STEPS IN PREPARING A COST OF PRODUCTION REPORT

Stilton Audio is a producer of speakers and amplifiers which are housed in plastic cabinets. Currently production of the plastic cabinets as well as final product assembly is completed in$-$house.

For accounting purposes, Stilton Audio uses the weighted average method, where plastic cabinets speaker and amplifier components are added at the beginning of the assembly process.

The following are cost and production data for the assembly process for April:

Production:

Units in process, April $1,60$ percent complete $60,000$

Units completed and transferred out $150,000$

Units in process, April $30,20$ percent complete $30,000$

Costs:

WIP, April $1$:

Plastic cabinets $ $1,200,000$

Speaker and amplifier components $12,600,000$

Conversion costs $5,400,000$

Costs added during April:

Plastic cabinets $2,400,000$

Speaker and amplifier components $25,200,000$

Conversion costs $8,640,000$

Required:

$1.$ Prepare a cost flow analysis for the assembly department for April.

$2.$ Calculate equivalent units of production for the assembly department for April.

$3.$ Calculate unit cost for the assembly department for April.

$4.$ Calculate the cost of units transferred out and the cost of EWIP inventory.

$5.$ Prepare a cost reconciliation for the assembly department for April.

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