Question

Portland Tile produces ceramic tiles using two sequential production departments; Tile Forming and Tile Finishing. The company uses a weighted average process costing system. Data for the Tile Forming Department Month ended Oct 31 Information about units: Units in WIP, Oct 1 4,000 Units started during Oct. 18,000 Completed and transferred to Finishing Units in WIP, Oct 31 (80% complete) 2,000 Direct materials are added at the beginning of the forming process. Information about costs: Beginning inventory consists of $800 of direct material costs and $1,000 of direct labor costs. Direct materials used in Oct. total $6,000, and direct labor costs incurred total $8,100. Overhead is applied at a rate of 100% of direct labor costs. Data for the Tile Finishing Department Month ended Oct 31 Information about units: Units in WIP, Oct 1 4,000 Units started during Oct. Completed and transferred out Units in WIP, Oct 31 (20% complete) 5,000 Direct materials are added at the end of the finishing process. Information about costs: Beginning inventory consists of S9,360 of transferred in costs, SO of direct material costs and S4,067 of direct labor costs. Direct materials added in Oct. total S6,900, and direct labor costs incurred total $16,200. Overhead is applied at a rate of 50% of direct labor costs.

Answer 1

Tile forming department:

Units in WIP, October 1	4,000
Add: Units started in October	18,000
Less: Units in WIP, October 31	2,000
Units completed and transferred to finishing	20,000

Tile finishing department:

Units in WIP, October 1	4,000
Add: Units started during October (i.e. units transferred from forming department during the month)	20,000
Less: Units in WIP, October 31	5000
Units completed and transferred out	19,000