Ampco Disk Company operates a computer disk manufacturing plant. Direct materials are added at the end of the process. The following data were for August 20X5:

Work in process, beginning inventory100,000 units

Transferred-in costs (100% complete)

Direct materials (0% complete)

Conversion costs (90% complete)

Transferred in during current period300,000 units

Completed and transferred out250,000 units

Work in process, ending inventory50,000

Transferred-in costs (100% complete)

Direct materials (0% complete)

Conversion costs (65% complete)

Calculate equivalent units for conversion costs using the FIFO method.  

 

 3) Ampco Disk Company operates a computer disk manufacturing plant. Direct materials are added at the end of the process. The following data were for June 20X5: 

 

 Work in process, beginning inventory50,000 units 

 

 Transferred-in costs (100% complete) 

 

 Direct materials (0% complete) 

 

 Conversion costs (90% complete) 

 

 

 

 Transferred in during current period150,000 units 

 

 Completed and transferred out175,000 units 

 

 

 

 Work in process, ending inventory 

 

 Transferred-in costs (100% complete) 

 

 Direct materials (0% complete) 

 

 Conversion costs (65% complete) 

 

 

 

 How many units must be accounted for during the period? 

   

 5) Transferred-in costs are incurred in previous departments that are carried forward as the product's cost as it moves to a subsequent process in the production cycle. 

 

 6) Transferred-in costs are treated as if they are a separate type of direct material added at the beginning of the process. 

 

 7) In order for a process-costing system to work, all units must be measured in the same denominations in all of the departments within the organization. 

 

 8) Each department is regarded as a distinct accounting entity when interdepartmental transfers are present in an organization. 

 

 9) 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 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. 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. Ending inventory was 25% complete. Additional information about the two departments follows: 

 

 

                        

	Cutting	Finishing
Beginning work-in-process units	20,000	20,000
Units started this period	40,000	50,000
Units transferred this period	50,000
Ending work-in-process units	10,000	20,000
Material costs added	$48,000	$28,000
Direct manufacturing labor	$16,000	$40,000
Other conversion costs	$8,000	$24,000

 

 Required: 

 

 Prepare a production cost worksheet using weighted-average for the cutting department and FIFO for the finish