The following example uses a process costing system (product costing). For the first part, you are dealing with "equivalent units" and the second part deals with "costs". Both need to be completed for the FINISHING department. All direct materials are added in the tanning department. Things to keep in mind: use the weighted average method of process costing + apply process costing methods to cases with transferred in costs. Directions The Lamarie Factory manufactures expensive boots in a two department production environment. Production starts in the tanning department and is completed in the finishing department. All direct materials are added in the tanning department. A partial list of data for the month follows: Beginning work in process Units % Complete as to direct materials % Complete as to conversion costs Direct materials / Transferred in costs Conversion costs Current month production Tanning not available 100% Finishing 4,000 100% 40% 60% $7,000 $6,000 $18,000 $10,000 Units started in production not available Units completed and transferred out 16,000 Direct materials/Transferred in costs added $18,000 Conversion costs added $32,000 not available 18,000 not available $19,000 Costs transferred out $50,000 not available Ending work in process Units % Complete as to direct materials % Complete as to conversion costs not available 100% not available 2,000 30% Required: A. Prepare a units of production schedule for the FINISHING department that details units to account for, units accounted for and equivalent full units of production. B. Prepare a costs of production schedule for the FINISHING department that details total costs to account for, costs per equivalent full unit of production and total costs accounted for. (Note: there will be a small rounding difference in the cost reconciliation)