1. Rocket Company manufactures sleeping bags using two processes, Stuffing and Stitching. Rocket uses a Process...

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1. Rocket Company manufactures sleeping bags using two processes, Stuffing and Stitching. Rocket uses a Process Costing System. Both processes use a Normal Costing System. Budgeted overhead costs for the Stuffing process are combined in a single pool with direct labor hours as the activity driver. Budgeted overhead costs for the Stitching process are combined in a single pool with machine hours as the activity driver. Rocket uses a weighted-average inventory cost flow assumption. The company uses two raw materials: goose down and nylon. On 1/1/20, the company's goose down in Raw Materials Inventory consisted of the following: Purchase Date Pounds Price per Pound 2/23/2019 3,000.00 $ 7/13/2019 5,000.00 $ 4.50 Total Cost $13,500.00 5.30 $ 26,500.00 8,000.00 $ 40,000.00 On 1/1/20, the company's nylon in Raw Materials Inventory consisted of the following: Purchase Date Yards 3/29/2019 8,000.00 $ 8/26/2019 1,000.00 $ Price per Yard Total Cost 11.85 $94,800.00 13.20 9,000.00 $ 13,200.00 $108,000.00 On 1/1/20, there were 200 units in WIP (Stuffing) with a total cost of $10,000 ($6,000 in materials added in the Stuffing process and $4,000 for conversion costs added in the Stuffing process). On 1/1/20, there were 300 units in WIP (Stitching) with a total cost of $48,000 ($36,000 transferred in from the Stuffing process, $4,000 in materials added in the Sitching process, and $8,000 for conversion costs added in the Stitching process). On 1/1/20, there were 50 units in Finished Goods Inventory with a total cost of $11,000. The Stuffing process expects to incur $10,000 of overhead costs and 1,250 direct labor hours in 2020. 1. Rocket Company manufactures sleeping bags using two processes, Stuffing and Stitching. Rocket uses a Process Costing System. Both processes use a Normal Costing System. Budgeted overhead costs for the Stuffing process are combined in a single pool with direct labor hours as the activity driver. Budgeted overhead costs for the Stitching process are combined in a single pool with machine hours as the activity driver. Rocket uses a weighted-average inventory cost flow assumption. The company uses two raw materials: goose down and nylon. On 1/1/20, the company's goose down in Raw Materials Inventory consisted of the following: Purchase Date Pounds Price per Pound 2/23/2019 3,000.00 $ 7/13/2019 5,000.00 $ 4.50 Total Cost $13,500.00 5.30 $ 26,500.00 8,000.00 $ 40,000.00 On 1/1/20, the company's nylon in Raw Materials Inventory consisted of the following: Purchase Date Yards 3/29/2019 8,000.00 $ 8/26/2019 1,000.00 $ Price per Yard Total Cost 11.85 $94,800.00 13.20 9,000.00 $ 13,200.00 $108,000.00 On 1/1/20, there were 200 units in WIP (Stuffing) with a total cost of $10,000 ($6,000 in materials added in the Stuffing process and $4,000 for conversion costs added in the Stuffing process). On 1/1/20, there were 300 units in WIP (Stitching) with a total cost of $48,000 ($36,000 transferred in from the Stuffing process, $4,000 in materials added in the Sitching process, and $8,000 for conversion costs added in the Stitching process). On 1/1/20, there were 50 units in Finished Goods Inventory with a total cost of $11,000. The Stuffing process expects to incur $10,000 of overhead costs and 1,250 direct labor hours in 2020.