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Question: Xanadu Company manufactures a product that passes through 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 January, the Finishing Department received 60,000 units from the Assembly Department. The transferred-in cost of the 60,000 units was $69,900. Costs added by Finishing during January included the following
Direct materials $35,200
Conversion $81,600
On January 1, the Finishing Department had 10,000 units in inventory that were 30 percent complete with respect to conversion costs. On January 31, 12,000 units were in inventory, one-third complete with respect to conversion costs. The costs associated with the 10,000 units in beginning inventory were as follows:
Transferred in $11,650
Conversion $12,750
Required: Prepare a cost of production report using the weighted average method.
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