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
in from
spinning

Direct
materials
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
Physical Transferred
Direct
Conversion
Flow of Production
Units
In
Materials
Costs
Completed and transferred out
500
500
500
500
a
a
Ending work in process, March 31
135
135
135
108b
Total physical units accounted for
635

Equivalent units
635
635
608
__________
a
The 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.
b

80% 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

Beginning work in process,

February 28
Costs added during March
Total costs
Divide by equivalent units
Cost per equivalent unit
Total cost to account for

$ 4,500
21,535
$26,035
635
$
41

$ 1,755
12,850
$14,605
635
$
23

Conversion
Costs
$ 5,199
51,953
$57,152
608
$
94

Total
$11,454
86,338

$97,792

Req. 3
Casey Carpet
Dyeing Department
Production Cost Report (Weighted-Average Method)

Month Ended March 31

Transferred In
Direct Materials
Beginning work in process, February 28
Costs added during March
Total cost to account for
Divide by equivalent units
Cost per equivalent unit
Assignment of total costs:
Units completed and transferred out
during March
Ending work in process, March 31:
Transferred in costs
Direct materials
Conversion costs
Total ending work in process, March 31
Total cost accounted for

$ 4,500
21,535
$26,035
635
$
41

$ 1,755
12,850
$14,605
635
$
23

500 ($41 + $23 + $94)

135 $23
108 $94

Journal Entry
ACCOUNTS
Work in Process InventoryDyeing
Work in Process InventorySpinning

POST.
REF.

DEBIT
21,535

CREDIT
21,535

Total
$11,454
86,338
$97,792

$79,000

135 $41

Req. 4

DATE

Conversion
Costs
$ 5,199
51,953
$57,152
608
$
94

5,535
3,105
10,152
18,792
$97,792

Work in Process InventoryDyeing

Materials Inventory
Manufacturing Wages
Manufacturing Overhead

64,803

Work in Process InventoryPlying

Work in Process InventoryDyeing

79,000

12,850
8,445
43,508

79,000