Weather Instruments Assembles Products from Component Parts

question 28

Essay

Weather Instruments assembles products from component parts.It has two departments that process all products.During January 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 $4,000 for conversion costs.Overhead is applied at the rate of 50 percent of direct manufacturing labour costs.Ending work-in-process inventory in the assembly department was 40 percent complete.All spoilage is considered normal and is detected at the end of the process.Beginning work-in-process in the finishing department was 75 percent complete as to conversion and ending work-in-process was 25 percent converted.Direct materials are added at the end of the process.Beginning inventories included $16,000 for transferred-in costs and $20,000 for conversion costs.Overhead in this department is equal to direct manufacturing labour costs.Additional information about the two departments follows:

Required:
Prepare a production cost worksheet using weighted-average for the assembly department and FIFO for the finishing department assuming that spoilage is recognized.

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Definitions:

Satisfaction

The agreed-to settlement as contained in an accord.

Promises Under Seal

Legally binding agreements marked with a seal, signifying a formal commitment beyond a standard contract.

UCC

Stands for the Uniform Commercial Code, a comprehensive set of laws governing all commercial transactions in the United States.

Unconscionable

Describing actions or conditions that are so unfair or immoral that they shock the conscience, often leading to legal invalidation.