8. The Sporting Bag Company manufactures golf bags in a two-department process:

Assembly and Finishing. The Assembly Department uses weighted average costing;

the cost driver for overhead in this department is unrelated to direct labor.

The Finishing Department adds the hardware to the assembled bags and uses FIFO costing. Overhead is applied to the bags in this department on a direct labor basis. During June, the following production data and costs have been gathered:

Required:

a. Prepare a cost of production report for the Assembly Department.

b. Prepare a cost of production report for the Finishing Department.

Transcribed Image Text:

ASSEMBLY DEPARTMENT: UNITS Beginning work in process (100% complete for material; 40% complete for labor; 30% complete for overhead) Units started Ending work in process (100% complete for material; 70% complete for labor, 90% complete for overhead) ASSEMBLY DEPARTMENT: COSTS Material Direct Labor Overhead Beginning inventory Current $ 3,755 100,320 $ 690 $ 250 63,606 Totals $104,075 $64,296 27,681 $27,931 FINISHING DEPARTMENT: UNITS Beginning work in process (100% complete for transferred-in; 15% complete for material; 40% complete for conversion) Units transferred in Ending work in process (100% complete for transferred-in; 30% complete for material; 65% complete for conversion) FINISHING DEPARTMENT: COSTS 250 8,800 400 Total $ 4,695 191,607 $196,302 100 8,650 200 Transferred-In Direct Material Conversion Total Beginning inventory Current Totals $ 2,176 188,570 $190,746 $ 30 $ 95 $ 2,301 15,471 21,600 $15,501 $21,695 225,641 $227,942