Question

13) 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: CuttingFinishing Beginning work-in-process units Units started this period Units transferred this period Ending work-in-process units 20,000 60,000 64,000 24,000 68,000 20,000 Material costs added Conversion costs Transferred-out cost $48,000 28,000 128,000 $34,000 68,500
Required: Prepare a production cost worksheet, using Weighted Average for the finishing department. Please show work.

Answer 1

Beginning work-in-process units FINISHING DEPARTMENT USING WEIGHTED AVERAGE Beginning work-in-process units Units started this period Units to account for 24,000 64,000 88,000 equivalent units direct conversion materials costs 68,000 68,000 20,000 6,000 88,000 74,000 physical units 68,000 20,000 88,000 Units transferred out Ending work-in-process units Units accounted for total cost of Beginning work-in-process cost added during the month total costs total equivalent units cost per equivalent unit direct materials $24,000 $34,000 $58,000 88,000 $0.66 conversion costs $28,000 $68,500 $96,500 74,000 $1.30 $52,000 $1,02,500 $1,54,500 $1.96 total cost reconciliation direct materials cost of units transferred out $44,818 cost of Ending work-in-process $13,182 total costs allocated $58,000 conversion costs $88,676 $7,824 $96,500 $1,33,494 $21,006 $1,54,500

Please refer the images below for the solution -

X for Beginning work-in-process units FINISHING DEPARTMENT USING WEIGHTED AVERAGE Beginning work-in-process units Units started this period Units to account for 24000 64000 =C3+C4 equivalent units Units transferred out Ending work-in-process units Units accounted for physical units 68000 20000 =C9+C10 direct materials conversion costs =C9*100% =C9*100% =C10*100% =C10*30% =D9+D10 =E9+E10 total direct materials conversion costs cost of Beginning work-in-process 24000 28000 cost added during the month 34000 68500 total costs =C14+C15 =D14+D15 total equivalent units =D11 =E11 cost per equivalent unit =C16/017 =D16/D17 =C14+D14 =C15+D15 =C16+D16 =C18+D18 cost reconciliation direct materials conversion costs total cost of units transferred out cost of Ending work-in-process total costs allocated =C18*D9 =C18*D10 =C22+C23 =D18*E9 =D18*E10 =D22+D23 =C22+D22 =C23+D23 =C24+D24

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