Mazey, Inc assembles its product in several departments Mazey has two departments, Cutting and Finishing, that processes all units Product is processed in Cutting, transferred to Finishing, and once complete, is transferred to finished goods Information for the month of October is as follows Beginning Work in Process Inventory for Cutting is $20,000 ($14,000 for materials and $6,000 for conversion costs) Beginning Work in Process Inventory for Finishing contains $18,000 for transferred in costs, $38,000 for the first material, and $16,000 for conversion costs) CUTTING DEPARTMENT The cutting department beginning work in process contains 24,000 units that are 40 complete as to conversion 55,000 units were started The work in process ending inventory contains 14,000 units that are 75 complete Conversion occurs uniformly whereas direct materials are added at the beginning of the process Within the Cutting Department, the following transactions occurred in October $60,000 raw materials were put into process in cutting Direct labor incurred was $24,000 Manufacturing Overhead incurred was $10,000 Conversion is applied to production Completed product was transferred to the Finishing Department FINISHING DEPARTMENT The finishing department beginning work in process contains 25,000 units that are 60 complete as to conversion Ending inventory containing 32,000 units is 65 complete Conversion occurs uniformly Two materials are added in this department the first direct material is added at the 35 point in the process the second direct material is added at the 70 point in the process Within the Finishing Department, the following transactions occurred The first direct material, $64,000, is used the second direct material, $87,000 is used Direct labor incurred was $32,000 Manufacturing Overhead incurred was $22,000 Conversion is applied to production Completed product was transferred to finished goods REQUIRED Prepare a production cost worksheet using FIFO for the cutting department (Round equivalent unit costs to at least FOUR decimal points, if necessary) Prepare a production cost worksheet using Weighted Average for the finishing department (Round equivalent unit costs to at least FOUR decimal points, if necessary)

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 06, 2024

Mazey, Inc. assembles its product in several departments. Mazey has two departments, Cutting and Finishing, that processes all units. Product is processed in Cutting, transferred

Mazey, Inc. assembles its product in several departments. Mazey has two departments, Cutting and Finishing, that processes all units. Product is processed in Cutting, transferred to Finishing, and once complete, is transferred to finished goods. Information for the month of October is as follows:

Beginning Work in Process Inventory for Cutting is $20,000 ($14,000 for materials and $6,000 for conversion costs)

Beginning Work in Process Inventory for Finishing contains $18,000 for transferred-in costs, $38,000 for the first material, and $16,000 for conversion costs).

CUTTING DEPARTMENT:

The cutting department beginning work in process contains 24,000 units that are 40% complete as to conversion. 55,000 units were started. The work in process ending inventory contains 14,000 units that are 75% complete. Conversion occurs uniformly whereas direct materials are added at the beginning of the process.

Within the Cutting Department, the following transactions occurred in October:

$60,000 raw materials were put into process in cutting.
Direct labor incurred was $24,000; Manufacturing Overhead incurred was $10,000.
Conversion is applied to production.
Completed product was transferred to the Finishing Department.

FINISHING DEPARTMENT:

The finishing department beginning work in process contains 25,000 units that are 60% complete as to conversion. Ending inventory containing 32,000 units is 65% complete. Conversion occurs uniformly. Two materials are added in this department; the first direct material is added at the 35% point in the process; the second direct material is added at the 70% point in the process.

Within the Finishing Department, the following transactions occurred:

The first direct material, $64,000, is used; the second direct material, $87,000 is used.
Direct labor incurred was $32,000; Manufacturing Overhead incurred was $22,000.
Conversion is applied to production.
Completed product was transferred to finished goods.

REQUIRED:

Prepare a production cost worksheet using FIFO for the cutting department. (Round equivalent unit costs to at least FOUR decimal points, if necessary)
Prepare a production cost worksheet using Weighted Average for the finishing department. (Round equivalent unit costs to at least FOUR decimal points, if necessary)