General Fabricators assembles its product in several departments. It has two departments that process all units. During October, the beginning work in process in the cutting department was half completed as to conversion, and complete as to direct materials (100%). The beginning inventory included $12,000 for materials and $3,000 for conversion costs. Ending work-in-process inventory in the cutting department was 40% complete. Direct materials are added at the beginning of the process. Beginning work in process in the finishing department was 75% complete as to conversion. Direct materials are added at the end of the process. Beginning inventories included $16,000 for transferred-in costs and $20,000 for conversion costs. Ending inventory was 25% complete. Additional information about the two departments follows: Cutting Finishing Beginning work-in-process units 20,000 20,000 Units started this period 40,000 50,000 Units transferred this period 50,000 Ending work-in-process units (10,000 20,000 Material costs added $48,000 $28,000 Direct manufacturing labor $ 16,000 $40,000 Other conversion costs $8,000 $24,000 Required: Prepare a production cost worksheet using FIFO for the cutting department and the finishing department. Question 2 Pet Products Company uses an automated process to manufacture its pet replica products. For June, the company had the following activities: Beginning work in process inventory Units placed in production Units completed Ending work in process inventory 4,500 items, 1/4 complete 15,000 units 17,500 units 2,000 items, 3/4 complete Cost of beginning work in process Direct material costs, current Conversion costs, current $4500 DM and $1055 Conversion $16,500 $23,945 Direct materials are placed into production at the beginning of the process and conversion costs are incurred evenly throughout the process. Required: Prepare a production cost worksheet using the FIFO method