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Acme manufactures a product which passes through two departments (Cleaning & Painting). They use the weighted average method of accounting, and data for a recent
Acme manufactures a product which passes through two departments (Cleaning & Painting). They use the weighted average method of accounting, and data for a recent month for the first department (Cleaning) follows: The beginning work in process inventory was 80% complete with respect to materials and 60% with respect to labor and overhead. The ending work in process inventory was 75% complete with respect to materials and 50% complete with respect to labor and overhead. 40,000 units were transferred to the Painting Department during the month. Units Materials Work in process, beginning 5,000 $9,375 Conversion $ 31,000 Units started in process 45,000 Costs Added during month $50,000 $14,000 a) Costs transferred to Painting Department b) Costs remaining in ending WIP inventory in the Cleaning Department
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