The Laramie Factory Produces Expensive Boots

question 58

Essay

The Laramie Factory produces expensive boots. It has two departments that 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. Ending inventory was 30% complete.
Additional information about the two departments follows:
Required:
Prepare a production cost worksheet using weighted-average costing for the finishing department.

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Definitions:

Endomembrane System

Multifunctional network of membrane-enclosed organelles (endoplasmic reticulum, Golgi bodies, vesicles).

Cytoskeleton

Network of microtubules, microfilaments, and intermediate filaments that support, organize, and move eukaryotic cells and their internal structures.

Cell Membrane

The semipermeable membrane surrounding the cytoplasm of a cell, responsible for controlling the passage of substances in and out of the cell.

Mitochondria

Organelles within eukaryotic cells that produce energy through the process of cellular respiration.