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Question - Zoo Company manufactures a product that passes two departments, Assembly and Finishing. In the Finishing Department, materials are added at the end of the process. Conversion costs are incurred uniformly throughout the process. During the month of December, the Finishing Department received 60,000 units from Assembly Department. The transferred-in cost of the 60,000 units was $69,900.
Cost added by Finishing during December included the following:
Direct materials $35,200
Direct labor 56,000
Overhead 25,600
On December 1, the Finishing Department had 10,000 units in inventory that were 30 percent complete with respect to conversion costs. On December 30, 12,000 units were in inventory, one third complete with respect the conversion costs. The costs associated with the 10,000 units in beginning inventory were as follows:
Transferred in $11,650
Direct Labor 8,750
Overhead 4,000
Prepare a cost of production report using the weighted average method.
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