Part IV. Problem - Total - 30 points. Otylia Manufacturing Company assembles its product in several departments. It has two departments that process all units. During February, the beginning work in process in the cutting department was half completed as to conversion, and complete as to direct materials. 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. Beginning inventories included 516,000 for transferred-in costs and $20,000 for conversion costs. Ending inventory was 25% complete. Additional information about the two departments follows: Finishing 20.000 50.000 Beginning work-in-process units Units started this period Units transferred this period Ending work-in-process units - Material costs added Direct manufacturing labor Other conversion costs Cutting 20.000 40,000 50,000 10,000 $51,000 $18,700 $26,900 20,000 $28,000 S40,000 $24,000 Required: Prepare a production cost worksheet using weighted average for the cutting department. Answer: Production Cost Worksheet Cutting Department Weighted Average Method Direct Materials Conversion Flow of production Work in process, beginning Started during period To account for Physical Units 20,000 40.000 60,000 Units transferred out 50,000 50,000 50,000 7,500 Work in process, ending 10,000 10,000 ,000 Accounted for 60,000 12.00 57,500 54,000 Costs Totals Conversion a s2 200 - Direct Materials 12- 2001 57.000 26,900 Work in process, beginning 152,00 28,000 YA Costs added during period 129,000 7900050.900 Total costs to account for 60.000 57900 CARN Divided by equivalent units Equivalent-unit costs enno 11.95 1325 0. er +1 +.5