Baxter Products Manufactures Office Furniture by Using an Assembly-Line Process

question 83

Essay

Baxter Products manufactures office furniture by using an assembly-line process. All direct materials are introduced at the start of the process, and conversion cost is incurred evenly throughout manufacturing. An examination of the company's Work-in-Process account for August revealed the following selected information:
Debit side-
August 1 balance: 600 units, 40% complete; cost, $44,600*
Production started: 1,800 units
Direct materials used during August: $90,000
August conversion cost: $51,400
Credit side-
Production completed: 1,400 units
*Supplementary records disclosed direct material cost of $30,000 and conversion cost of $14,600.
Conversations with manufacturing personnel revealed that the ending work in process was 80% complete.
Required:
A. Determine the number of units in the August 31 work-in-process inventory.
B. Calculate the cost of goods completed during August, and prepare the appropriate journal entry to record completed production.
C. Determine the cost of the August 31 work-in-process inventory.

---

Definitions:

Empowerment

Providing individuals with the authority, confidence, and means to increase control over their own lives or work.

Observes

The act of carefully watching or monitoring something or someone to gather information.

Behavior

How a person or a group acts or responds when influenced by stimuli from the environment or from within themselves.

Individual Piece-Rate System

A compensation system where employees are paid based on the number of units they produce or tasks they complete.