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

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 Conversion
Materials 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
POST.
DATE ACCOUNTS 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