Reference no: EM132619773

Timing Technology, Inc. manufactures timing devices. During 20x1, 2,000,000 units were completed and transferred to finished-goods inventory. On December 31, 20x1, there were 370,000 units in work in process. These units were 46 percent complete to conversion and 100 percent complete to direct material. Finished-goods inventory consisted of 700,000 units. Materials are added to production at the beginning of the manufacturing process, and overhead is applied to each product at the rate of 100 percent of direct-labor costs. There was no finished-goods inventory on January 1, 20x1. A review of the inventory cost records disclosed the following information:

Costs                                                    Units               Materials           Labor

Work in process, January 1, 20x1 360,000           $320,000             $320,400 (82% complete to conversion)

Units started in production 2,010,000

Direct-material costs $5,131,000

Direct-labor costs $4,562,550

Question 1: Complete the following schedule as of December 31, 20x1, to compute the cost of work-in-process inventory.

Question 2: Complete the following schedule as of December 31, 20x1, to compute the cost of finished-goods inventory.