Lexington Company produces baseball bats and cricket paddles. It has two departments that process all products. During July, 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 $40,000 for materials and $60,000 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 80% complete as to conversion. Direct materials for finishing the units are added near the end of the process. Beginning inventories included $24,000 for transferred-in costs and $28,000 for conversion costs. Ending inventory was 30% complete. Additional information about the two departments follows:
CuttingFinishing
Beginning work-in-process units20,00024,000
Units started this period60,000
Units transferred this period64,00068,000
Ending work-in-process units20,000
Material costs added$48,000$34,000
Conversion costs28,00068,500
Transferred-out cost128,000
Required:
Prepare a production cost worksheet, using FIFO for the finishing department.
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