Question

The Laramie Factory produces expensive boots. It has two departments, tanning and finishing 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 $11,000 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 out this period 16,000 18,000 Ending work-in-process units 2,000 Material costs added $18,000 Conversion costs $32,000 $18,630 Transferred-out cost $50,400 Required: Complete the production cost worksheet below using FIFO costing for the finishing department.

Answer 1

Step-by-step explanation:

50,400

18,600

69,000

BRAINILIEST PLEASE

Answer 2

The Laramie Factory

Cost Worksheet for the Finishing Department, using FIFO Costing

Finishing Department

Cost assigned to: Materials Conversion Total

Units transferred out $45,360 $18,000 $63,360

Ending work in process 5,040 600 5,640

Total cost accounted for $50,400 $18,600 $69,000

Step-by-step explanation:

a) Data and Calculations:

Materials Conversion

Tanning Finishing Tanning Finishing

Beginning work in process 100% 100% 40% 60%

Cost of beginning WIP $6,000 $7,000 $18,000 $11,000

Ending work in process 100% 100% 40% 30%

Additional information:

Tanning Finishing

Beginning work-in-process units 5,000 4,000

Units started this period 14,000 16,000

Units transferred out this period 16,000 18,000

Ending work-in-process units 3,000 2,000

Materials Conversion

Tanning Finishing Tanning Finishing

Beginning work in process 100% 100% 40% 60%

Beginning work in process done this period 60% 40%

Ending work in process 100% 100% 40% 30%

Cost of beginning WIP $6,000 $7,000 $18,000 $11,000

Costs added 18,000 $54,255 32,000 18,630

Total costs of production $24,000 $61,255 $50,000 $29,630

Transferred-out cost $50,400

Equivalent units

Materials Conversion

Tanning Finishing Tanning Finishing

Beginning work-in-process units 0 0 3,000 1,600

Units started and completed 16,000 18,000 13,000 16,400

Ending work-in-process units 3,000 2,000 1,200 600

Equivalent units of production 19,000 20,000 17,200 18,600

Cost per equivalent units Materials Conversion

Tanning Finishing Tanning Finishing

Costs added/transferred in $18,000 $50,400 $32,000 $18,630

Equivalent units of production 19,000 20,000 17,200 18,600

Cost per equivalent unit $0.95 $2.52 $1.86 $1.00

Tanning Department

Cost assigned to: Materials Conversion Total

Units transferred out $15,200 $29,760 $44,960

Ending work in process 2,850 2,232 5,082

Total costs $18,050 $31,992 $50,042

Finishing Department

Cost assigned to: Materials Conversion Total

Units transferred out $45,360 $18,000 $63,360

Ending work in process 5,040 600 5,640

Total cost accounted for $50,400 $18,600 $69,000