Question

Azule Co. manufactures in two sequential processes, cutting and binding. The two departments report the information below for a recent month. Cutting Binding Beginning work in process Transferred in from cutting dept. $ 1,250 Direct materials $ 1,070 2,766 Conversion 3,400 3,350 Costs added during March Direct materials $ 10,140 $ 9,456 Conversion 11,100 18,725 Transferred in from cutting dept. 17,110 Transferred to finished goods 33,000 Determine the ending balances in the Work in Process Inventory accounts of each department.

Answer 1

Cutting $8,600

Binding $19,657

Step-by-step explanation:

Calculation to Determine the ending balances in the Work in Process Inventory accounts of each department

Ending work in process:

Cutting = $1,070 + $3,400+ $10,140 + $11,100- $17,110

Cutting = $8,600

Binding = $1,250 + $2,766 + $3,350+ $9,456+ $18,725 + $17,110 - $33,000

Binding= $19,657

Therefore the ending balances in the Work in Process Inventory accounts of each department is:

Cutting $8,600

Binding $19,657