General Fabricators Assembles Its Product in Several Departments

question 49

Essay

General Fabricators assembles its product in several departments. It has two departments that process all units. During October the beginning work-in-process in the Assembly Department was half completed as to conversion and complete as to direct materials. The beginning inventory included $12,000 for materials and $3,000 for conversion costs. Ending work-in-process inventory in the Assembly Department was 40 percent complete. Direct materials are added at the beginning of the process; conversion costs are added evenly throughout the process.
Beginning work-in-process in the Finishing Department was 75 percent complete as to conversion. Direct materials are added at the end of the process; conversion costs are added evenly throughout the process. Beginning inventories included $16,000 for transferred-in costs and $20,000 for conversion costs. Ending inventory was 25 percent complete. Additional information about the two departments follows:
Required:
Determine the assignment of costs to units transferred-out and ending inventory , using weighted-average for the Assembly Department and FIFO for the Finishing Department.

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Definitions:

Performance Criteria

Standards or benchmarks used to evaluate the effectiveness or success of an individual's work or performance.

Unified Commitment

A collective dedication or pledge by a group or organization towards achieving a common goal or principle.

Clear, Elevating Goal

A defined objective that is understandable and inspires people to strive towards it, often motivating higher performance.

Principled Leadership

A leadership approach based on adhering to a set of ethical values and standards, guiding decisions and actions with integrity and moral courage.