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The Laramie Factory produces expensive boots. It has two departments, tanning and finishing departments, which process all the items. During January, the beginning work in

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The Laramie Factory produces expensive boots. It has two departments, tanning and finishing departments, which process all the items. During January, the beginning work in process in the tanning department was 40% complete as to conversion and 100% complete as to direct materials. The beginning inventory included $6,000 for materials and $18,000 for conversion costs. Ending work-in-process inventory in the tanning department was 40% complete. Direct materials are added at the beginning of the process. Beginning work in process in the finishing department was 60% complete as to conversion. Beginning inventories included $7,000 for transferred-in costs and $10,000 for conversion costs (no direct materials are required for finishing department). Ending inventory was 30% complete. Additional information about the two departments follows: Tanning Finishing Beginning work-in-process units 5,000 4,000 Units started this period 14,000 Units transferred out this period 16,000 18,000 Ending work-in-process units 2,000 Material costs added $18,000 Conversion costs $32,000 $19,440 Transferred-out cost $48,000 Required: Complete the production cost worksheet below using FIFO costing for the finishing department. Finishing Department FIFO Method Physical Units Trans-In Conversion 4000 Flow of production Work in process, beginning Transferred in during period To account for 16000 20,000 Completed and Transferred out During current period From Beg. WIP Start and Complete 4000 14,000 1600 14000 14000 2000 Work in process, ending 2000 600 Accounted for work done in current only 20,000 16,000 16,200 Costs Totals Trans-In Conversion Work in process, beginning Costs added during period Total costs to account for Costs added in current Divided by equivalent units Equivalent-unit costs Assignment of costs Completed and transferred out WIP, beg Costs added to beg. WIP in current Total from beg Started and completed Total costs of comp. & transf. out Work in process, ending Total costs accounted for

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