Question 1

The Metal Works Company manufactures a product that goes through two departments prior to completion. The following information is available on work in one of these departments, the Forming Department, during March:

Materials Conversion Work in process, March 1 $ 42,190 $ 38,000 Cost added during March $440.810 $ 394.000Percentage Completed Units Materials Conversion Work in process, March 1 70,000 5/7 3/7 Started into production 460,000 Completed and transferred out 450,000 Work in process, March 31 80,000 7/8 5/8Conversion Percentage Units Complete Beginning work in process inventory 10,000 20% Units started 21,000 Units completed and transferred out 26,000 Ending work in process inventory 5,000 80%Units Materials Conversion Work in process, Jan. 1 80% complete with respect to conversion costs 100,000 $100,000 $157.500 Units started into production 500,000 Costs added during the year: Materials $650,000 Conversion $997.500 Units completed during the year 450,000Costs added to production during the month: Materials cost $79,732 Conversion cost $887,626 Work in process, ending: Units in process 80C Stage of completion with respect to materials 50% Stage of completion with respect to conversion 40%Work in process, beginning: Units in process 300 Stage of completion with respect to materials 60% Stage of completion with respect to conversion 80% Costs in the beginning inventory: Materials cost $594 Conversion cost $8,256 Units started into production during the month 26,000 Units completed and transferred out 25,500