Question :
9) General Fabricators assembles its product in several departments. It : 1217021
9) General Fabricators assembles its product in several departments. It has two departments that process all units. During October, the beginning work in process in the cutting department was half completed as to conversion, and complete as to direct materials. The beginning inventory included $12,000 for materials and $3,000 for conversion costs. Ending work-in-process inventory in the cutting department was 40% complete. Direct materials are added at the beginning of the process.
Beginning work in process in the finishing department was 75% complete as to conversion. Direct materials are added at the end of the process. Beginning inventories included $16,000 for transferred-in costs and $20,000 for conversion costs. Ending inventory was 25% complete. Additional information about the two departments follows:
Cutting
Finishing
Beginning work-in-process units
20,000
20,000
Units started this period
40,000
50,000
Units transferred this period
50,000
Ending work-in-process units
10,000
20,000
Material costs added
$48,000
$28,000
Direct manufacturing labor
$16,000
$40,000
Other conversion costs
$8,000
$24,000
Required:
Prepare a production cost worksheet using weighted-average for the cutting department and FIFO for the finishing department.
10) The Laramie Factory produces expensive boots. It has two departments that process all the items. During January, the beginning work in process in the tanning department was 40% complete as to conversion and 100% complete as to direct materials. The beginning inventory included $6,000 for materials and $18,000 for conversion costs. Ending work-in-process inventory in the tanning department was 40% complete. Direct materials are added at the beginning of the process.
Beginning work in process in the finishing department was 60% complete as to conversion. Beginning inventories included $7,000 for transferred-in costs and $10,000 for conversion costs. Ending inventory was 30% complete.
Additional information about the two departments follows:
Tanning
Finishing
Beginning work-in-process units
5,000
4,000
Units started this period
14,000
?
Units transferred this period
16,000
18,000
Ending work-in-process units
?
2,000
Material costs added
$18,000
?
Conversion costs
32,000
$19,000
Transferred-out cost
50,000
?
Required:
Prepare a production cost worksheet using weighted-average costing for the finishing department.
11) Lexington Company produces baseball bats and cricket paddles. It has two departments that process all products. During July, the beginning work in process in the cutting department was half completed as to conversion, and complete as to direct materials. The beginning inventory included $40,000 for materials and $60,000 for conversion costs. Ending work-in-process inventory in the cutting department was 40% complete. Direct materials are added at the beginning of the process.
Beginning work in process in the finishing department was 80% complete as to conversion. Direct materials for finishing the units are added near the end of the process. Beginning inventories included $24,000 for transferred-in costs and $28,000 for conversion costs. Ending inventory was 30% complete. Additional information about the two departments follows:
Cutting
Finishing
Beginning work-in-process units
20,000
24,000
Units started this period
60,000
Units transferred this period
64,000
68,000
Ending work-in-process units
20,000
Material costs added
$48,000
$34,000
Conversion costs
28,000
68,500
Transferred-out cost
128,000
Required:
Prepare a production cost worksheet, using FIFO for the finishing department.
12) When there are multiple support departments within an organization, it is common to use journal entries to transfer-in costs from one department to another. What are some of the points to remember about these costs?
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