DESCRIPTION

Smith Electronics Company's chip mountain production department had 300 units of unfinished product, each 40% complete on 09/30.During October, this department put another 900 units into production and completed 1,000 units transferring them to the next production department.10/31, 200 units of unfinished product existed, 70% completed, were recorded in ending WIP inventory.Smith Electronic introduces all direct materials when the cost production process is 50% complete.Direct labor & factory overhead (i.e., conversion costs) are added uniformly throughout the process.