Otylia Manufacturing Company Assembles Its Product in Several Departments Required:
Prepare a Production Cost Worksheet Using Weighted-Average for the Two

question 113

Essay

Otylia Manufacturing Company assembles its product in several departments.It has two departments that process all units.During February,the beginning work in process in the cutting 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 cutting department was 40% complete.Direct materials are added at the beginning of the process.
Beginning work in process in the finishing department was 75% complete as to conversion.Beginning inventories included $16,000 for transferred-in costs and $20,000 for conversion costs.Ending inventory was 25% complete.Additional information about the two departments follows:
$$\begin{array} { | l | r | r | } \hline & { \text { Cutting } } & \text { Finishing } \\\hline \text { Beginning work-in-process units } & 20,000 & 20,000 \\\hline \text { Units started this period } & 40,000 & 50,000 \\\hline \text { Units transferred this period } & 50,000 & \\\hline \text { Ending work-in-process units } & 10,000 & 20,000 \\\hline \text { Material costs added } & \$ 42,000 & \$ 28,000 \\\hline \text { Direct manufacturing labor } & \$ 18,700 & \$ 40,000 \\\hline \text { Other conversioncosts } & \$ 21,500 & \$ 24,000 \\\hline\end{array}$$ Required:
Prepare a production cost worksheet using weighted-average for the cutting department.

Recognize and differentiate between formal and informal contracts.

Comprehend the role and effect of acceptance, offer, and communication in contract formation.

Understand the significance of the Statute of Frauds in contract enforceability.

Interpret legal issues related to the adequacy of consideration and pre-existing duties.

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Definitions:

Surplus

A situation where the quantity of a product or service supplied exceeds the quantity demanded at the current price.

Maximum Price

A price ceiling set by the government or another regulatory body, beyond which prices cannot legally rise for essential goods or services.

Economic Impact

The effect of an event, policy, or market change on the economy, which can be measured in terms of changes in employment, GDP, or other economic indicators.

Apartments

Living spaces within a building or complex, typically rented, that provide residential accommodation.