Weather Instruments Assembles Products from Component Parts

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.

Correct Answer:

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Normal spoilage assembly = 20,000 + 40,0...

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