Many of the products made by Wireless Plastics Company are standard replacement parts for…

Many of the products made by Wireless Plastics Company are standard replacement parts for telephones that require long production runs and are produced continuously. A unit for Wireless Plastics is a box of parts. During April, direct materials for 25,250 units were put into production. Total cost of direct materials used during April was $2,273,000. Direct labor costs totaled $1,135,000, and overhead was $2,043,000. The beginning work in process inventory contained 1,600 units, which were 100 percent complete for direct materials costs and 60 percent complete for conversion costs. Costs attached to the units in beginning inventory totaled $232,515, which included $143,500 of direct materials costs. At the end of the month, 1,250 units were in ending inventory; all direct materials had been added, and the units were 70 percent complete for conversion cost Required 1. Using the average costing method and assuming no loss due to spoilage, prepare a process cost report for April. 2. From the information in the process cost report, identify the amount that should be transferred out of the Work in Process Inventory account, and state where those dollars should be transferred.

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