Lexington Company produces baseball bats and cricket paddles. It has two departments that process all products. During July, beginning work in process in the finishing department was 40% complete as to conversion. Direct materials for finishing the units are added when the units are 90% complete (90% through the process). Beginning inventories included $30,000 for transferred-in costs and $40,000 for conversion costs. Ending inventory was 60% complete (60% through the process). Additional information about the two departments follows:

	Cutting	Finishing
Beginning work-in-process units	20,000	40,000
Units started/transferred in this period	80,000
Units transferred out this period	70,000	80,000
Ending work-in-process units		30,000
Material costs added this period	$48,000	$34,000
Conversion costs added this period	28,000	68,500
Cost of units transferred out this period	128,000

Required:

Create an excel worksheet with tables similar to the ones below and Complete the appropriate cells (i.e., identify the missing information and then complete it) in the production cost worksheet below, using FIFO for the finishing department. Set

Lexington Co. - Production Cost Worksheet For the Finishing Department using FIFO
					Step 1			Step 2
					Physical			Equivalent Units
					Units		Transferred. In	DM	Conversion Costs
Work in Process, beginning					40000
Transferred in during current period
Total Units to account for
Units completed and transferred
out during current period:
From Beg. WIP					40000
Units Started and Completed								40000	40000
Work in Process, ending					30000
Units Accounted for					110000
Equivalent units of Work done in current period							70000	80000

1

					Total		Specific Costs
					Prod'n cost	s	Transferred In	DM	Conversion Costs
Step 3	Costs in Beg. WIP				70000		30000	0	40000
	Costs added during current peri				od 230500		128000	34000	68500
	Total costs to account f			or	300500		158000	34000	108500
Step 4	Costs added in the current peri				d
	Divide by equiv. units of work done in curr.					d.
	Cost per equiv. unit
Step 5	Assignment of Costs:
	Units Completed and transferre				d out:
	Costs in Beg. WIP				70000		30000	0	40000
	Costs added to Beg. WIP units
	Total from Beg. WI			P
	Costs of units started & compl				eted
	Total costs of units complet				ed
	WIP, ending
	Total costs accounted f			or	300500