General Fabricators assembles its product in two departments. Ithas two departments that process all units: Cutting and Finishing.During October, Cutting department allocated a total cost of$75,000 to units that were finished in the cutting process andtransferred to the finishing process.
In October, beginning work in process in the finishingdepartment was 75% complete as to conversion. Direct materials areadded at the end of the finishing process. Conversion costs areadded evenly in the finishing process. Beginning inventories infinishing department included $9,000 for transferred-in costs and$20,000 for conversion costs. Ending inventory in finishingdepartment was 30% complete. Additional information about thedepartments in October follows:
| Finishing |
Beginning WIP units | 20,000 |
Units started this period | 50,000 |
Units transferred this period | 50,000 |
Ending WIP units | 20,000 |
| |
Materials costs added | $28,000 |
Direct Manufacturing Labor added | $40,000 |
Other Conversion costs added | $24,000 |
Required:
1. Determine a) the amount of ending WIP, b) the amount oftransferred- out cost (credit amount), usingWeightedAveragefor the finishing department.
