The Leather Factory Has Two Departments That Process All of Its

question 75

Essay

The Leather Factory has two departments that process all of its production, the Tanning Department and the Finishing Department. Production begins in the Tanning Department, then the units are transferred to the Finishing Department. Conversion costs are added evenly throughout the process, no additional materials are added in the Finishing Department.
Beginning work-in-process in the finishing department was 60 percent complete as to conversion; ending inventory was 30 percent complete. Additional information about the Finishing Department follows:

Required:
Using the weighted-average method determine the assignment of costs to units transferred-out and ending inventory for the Finishing Department. Round costs per equivalent unit to the nearest cent.

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Definitions:

Sales Orientation

A business approach that prioritizes selling products and services over understanding or meeting the actual needs and desires of the customers.

Salesperson

A salesperson is an individual who sells goods or services to customers, often working on behalf of a company to facilitate transactions and promote sales.

Wise Customer

A term reflecting a customer who is informed, discerning, and judicious in their purchasing decisions, often seeking value and quality.

Personal Selling

A sales method involving direct face-to-face communication between a salesperson and a potential buyer.