Problem Four: Process Costing Graves Company produces rugs. It has two departments that process all products. During May, the beginning work in process in the cutting department was half completed as to conversion costs and 100% complete as to direct materials costs. The beginning inventory included $40,000 for materials and $60,000 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 80% complete as to conversion costs. Direct materials for finishing the units are added near the end of the process. Beginning inventories included $24,000 for transferred-in costs and $28,000 for conversion costs. Ending inventory was 30% complete. Additional information about the two departments follows: Beginning work-in-process units Units started this period Units transferred out this period Ending work-in-process units Material costs added Conversion costs added Transferred-out cost Required: Cutting Finishing 20,000 24,000 60,000 64,000 68,000 20,000 $48,000 $34,000 28,000 68,500 128,000 a. Prepare a production cost worksheet, using FIFO for the finishing department. b. Prepare a production cost worksheet, using Weighted-Average Method for the finishing department.