Toronto AutoFab, Inc. manufactures a variety of aluminum parts for the automotive industry. The company uses a weighted-average process-costing system. A unit of product passes through three departments-molding, assembly, and finishing—before it is completed.

The following activity took place in the Finishing Department during February.

Raw material is added at the beginning of processing in the Finishing Department. The work-in-process inventory was 60 percent complete as to conversion on February 1 and 30 percent complete as to conversion on February 28. The equivalent units and current period costs per equivalent unit of production for each cost factor are as follows for the Finishing Department.

Required:
1. Calculate the following amounts:

a. Cost of units completed and transferred out to finished-goods inventory during February.

b. Cost of the Finishing Department's work-in-process inventory on February 28.
2. The total costs of prior departments included in the work-in-process inventory of the Finishing Department on February 1 amounted to \($14,500\) . Prepare the journal entry to record the transfer of goods from the Assembly Department to the Finishing Department during February.

Transcribed Image Text:

Work-in-process inventory, February 1 Units transferred in from the Assembly Department... Units completed and transferred out to finished-goods inventory. Units 700 7,000 5,950