Husky Ltd. manufactures toys using a continuous production process that flows through two departments: Forming and Finishing. In the forming department, various components are built and are transferred to the finishing department. In the finishing department, those components are assembled into Husky’s final product and once finished, are transferred to Husky’s Finished Goods Inventory. Any spoilage is detected at the end of the process (i.e. when the toys are 100% complete).

Husky uses the FIFO method of accounting for costs.

In the Finishing Department, Direct materials are added at 70% of conversion and conversion costs are added evenly throughout the process.

	Finishing Department
	Physical Units	Transferred In	Direct Materials	Conversion
Work in Process January 1	37,000	$ 76,400	$ 0	$ 30,062
Degree of Completion in beginning WIP				65%
Units Transferred in from Forming in January	232,500
Good Units Transferred Out	240,000
Work In Process January 31	24,000
Normal Spoilage as a percentage of good units	2%
Degree of Completion in Ending WIP				50%
Costs added in November		$ 488,250	$ 26,400	$ 288,375

Required:

Complete a Cost of Production Worksheet for the Finishing Department for the Month of January.