1. Taylor Ski Company manufactures snow skis. During the most recent accounting period, the companys finishing department transferred 4,150 sets of skis to finished goods. At the end of the accounting period, 460 sets of skis were estimated to be 50 percent complete. Total product costs for the finishing department amounted to $219,000.

A. Determine the cost per equivalent.

B & C. Determine the cost of the goods transferred out of the finishing department and the cost of the finishing departments ending work in process inventory.

Cost Allocation

To Finish Goods:

To ending inventory

2. Griffin Watches, Inc., makes watches. Its assembly department started the accounting period with a beginning inventory balance of $22,000. During the accounting period, the department incurred $40,500 of transferred-in cost, $25,500 of materials cost, $60,000 of labor cost, and $95,000 of applied overhead cost. The department processed 6,750 total equivalent units of product during the accounting period.

A.

Assuming that 1,150 equivalent units of product were in the ending work in process inventory, determine the amount of cost transferred out of the Work in Process Inventory account of the assembly department to the Finished Goods Inventory account. What was the assembly departments cost of ending work in process inventory? Cost Allocation To Finish Goods: To ending inventory B. Assuming that 5,700 units of product were transferred out of the assembly departments work in process inventory to finished goods inventory, determine the amount of the assembly departments cost of ending work in process inventory. What was the cost of the finished goods inventory transferred out of the assembly department? Cost Allocation To Finish Goods: To ending inventory