Off Road, Inc., manufactures auto roof racks in a two-stage process that includes shaping and plating. Steel alloy is the basic raw material of the shaping process. The steel is molded according to the design specifications of automobile manufacturers (Ford and General Motors). The Plating Department then adds an anodized finish. At March 31, before recording the transfer of cost from the Plating Department to Finished Goods Inventory, the Off Road general ledger included the following account:
The direct materials (rubber pads) are added at the end of the plating process. Conversion costs are incurred evenly throughout the process. Work in process of the Plating Department on February 28 consisted of 600 racks. The $30,480 beginning balance of Work in Process—Plating includes $18,000 of transferred-in cost and $12,480 of conversion cost. During March, 3,000 racks were transferred in from the Shaping Department. The Plating Department transferred 2,200 racks to Finished Goods Inventory in March, and 1,400 were still in process on March 31. This ending inventory was 50% of the way through the plating process. Off Road uses weighted-average process costing.
Required
1. Draw a time line for the Plating Department, similar to Exhibit 21-10.
2. Use the time line to help you compute the equivalent units, cost per equivalent unit, and total costs to account for in the Plating Department for March.
3. Prepare the March production cost report for the Plating Department.
4. Journalize all transactions affecting the Plating Department during March, including the entries that have already been posted.