Casey Carpet manufactures broadloom carpet in seven processes: Spinning, Dyeing, Plying, Spooling, Tufting, Latexing, and Shearing. in the Dyeing Department, direct materials (dye) are added at the beginning of the process. Conversion costs are incurred evenly throughout the process. Casey uses weighted-average process costing. information for March 2011 follows:
Units:
Beginning work in process inventory, 40% complete as to conversion work 75 rolls
transferred-in from Spinning Department during March 560 rolls
Completed during March 500 rolls
Ending work in process (80% complete as to conversion work) 135 rolls
Costs:
Beginning work in process (transferred-in cost, $1,852
materials cost, $3,075 conversion costs, $2,212 $7,139
Transferred-in from Spinning Department during March 12,880
Materials cost added during march 22,960
Conversion costs added during March (manufacturing wages, $8,445; manufacturing overhead, $45,887) 54,332
requirements
1. Prepare a time line for Casey's Dyeing Department.
2. use the time line to help you compute the equivalent units, cost per equivalent unit, and total costs to account for in Casey's Dyeing Department for March using the weighted-average methods.
3. Prepare the March production cost report for Casey's Dyeing Department.
4. Journalize all transactions affecting Casey's Dyeing Department during March, including the entries that have already been posted.

Req. 1

Transferred Direct

in from materials

spinning added

Conversion costs added evenly throughout the process

Start 80% 100%

Completion

500 units completed and transferred out

135 units started but not finished

(ending work in process inventory)

Req. 2

Casey Carpet
Dyeing Department
Equivalent Unit Computation (Weighted-Average)
Month Ended March 31
Flow of / Equivalent Units
Flow of Production / Physical Units / Transferred In / Direct Materials / Conversion Costs
Completed and transferred out / 500 / 500 / 500 / 500
Ending work in process, March 31 / 135 / 135a / 135a / 108b
Total physical units accounted for / 635
Equivalent units / 635 / 635 / 608

______

aThe time line shows that transferred-in costs and direct materials are incurred at the beginning of the Dyeing process. The ending inventory did pass the point where transferred in and direct material costs are incurred. The ending inventory is therefore complete with respect to transferred-in costs and direct materials.

b80% of the conversion work on ending work in process inventory was done in March:

135 × 80% = 108

Casey Carpet
Dyeing Department
Cost per Equivalent Unit
Month Ended March 31
Transferred In / Direct Materials / Conversion Costs / Total
Beginning work in process,
February 28 / $ 4,500 / $ 1,755 / $ 5,199 / $11,454
Costs added during March / 21,535 / 12,850 / 51,953 / 86,338
Total costs / $26,035 / $14,605 / $57,152
Divide by equivalent units / ÷ 635 / ÷ 635 / ÷ 608
Cost per equivalent unit / $ 41 / $ 23 / $ 94
Total cost to account for / $97,792

Req. 3

Casey Carpet
Dyeing Department
Production Cost Report (Weighted-Average Method)
Month Ended March 31
Transferred In / Direct Materials / Conversion Costs / Total
Beginning work in process, February 28 / $ 4,500 / $ 1,755 / $ 5,199 / $11,454
Costs added during March / 21,535 / 12,850 / 51,953 / 86,338
Total cost to account for / $26,035 / $14,605 / $57,152 / $97,792
Divide by equivalent units / ÷ 635 / ÷ 635 / ÷ 608
Cost per equivalent unit / $ 41 / $ 23 / $ 94
Assignment of total costs:
Units completed and transferred out
during March / 500 × ($41 + $23 + $94) / $79,000
Ending work in process, March 31:
Transferred in costs / 135 × $41 / 5,535
Direct materials / 135 × $23 / 3,105
Conversion costs / 108 × $94 / 10,152
Total ending work in process, March 31 / 18,792
Total cost accounted for / $97,792

Req. 4

Journal Entry
DATE / ACCOUNTS / POST. REF. / DEBIT / CREDIT
Work in Process Inventory—Dyeing / 21,535
Work in Process Inventory—Spinning / 21,535
Work in Process Inventory—Dyeing / 64,803
Materials Inventory / 12,850
Manufacturing Wages / 8,445
Manufacturing Overhead / 43,508
Work in Process Inventory—Plying / 79,000
Work in Process Inventory—Dyeing / 79,000