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. 3 Beginning work in process in the finishing department was 80% complete as to con Direct materials for finishing the units are inventories included $24,00 Ending inventory was 30% complete. Additional information about the two departments follows: version. added near the end of the process. Beginning 0 for transferred-in costs and $28,000 for conversion costs. Cutting Finishing 24,000 Beginning work-in-process units Units started this period Units transferred this period Ending work-in-process units 20,000 60,000 64,000 2 2 2 2 68,000 20,000 Material costs added Conversion costs Transferred-out cost 4 $48,000 28,000 128,000 $34,000 68,500

Required:

Prepare a production cost worksheet, using (((weighted average))) for the finishing department.

Answer 1

Production Cost Worksheet Finishing Department
Flow of Production	Physical Units	Direct Materials	Conversion	Trans-In
Units transferred this period	68,000
Ending Work in Process	20,000
To account for	88,000
Units Transferred Out	68,000	68,000	68,000	68,000
Ending Work in Process	20,000	0	6,000	20,000
Total equivalent units accounted for	88,000	68,000	74,000	88,000
Costs	Totals	Direct Materials	Conversion	Trans-In
Work in Process, Beginning	$ 52,000	0	$ 28,000	$ 24,000
Costs added during the period	230,500	34,000	68,500	128,000
Total costs to account for	$ 282,500	$ 34,000	$ 96,500	$ 152,000
Divided by equivalent units		68,000	74,000	88,000
Equivalent unit costs	$ 3.53	$ 0.50	$ 1.30	$ 1.73
Assignment of Costs
Units completed and transferred		$ 240,040