Dutton Industries is a manufacturer of cleaning products. Its main product goes through two departments: Mixing and Bottling. During June, the beginning WIP in the Mixing department was 32% complete as to conversion cost. The beginning inventory included $15,200 for materials and $19,800 for conversion costs. Ending WIP in the Mixing department was 80% complete. All direct materials are added at the beginning of the process in each department. Inspection occurs at the end of the process in both departments. Normal spoilage is 2.5% of good output in Mixing and 1.4% of good output in Bottling. Beginning WIP in Bottling was 60% complete with respect to conversion costs and ending WIP was 30% converted. Beginning WIP included $8,850 for direct materials, $72,200 for transferred in costs and $23,800 for conversion costs. Additional information follows:
Mixing Bottling
Beginning work-in-process units 45,000 42,000
Units started this period 130,000 ?
Units transferred this period 159,000 187,000
Ending work-in-process units 9,800 10,600
Material costs added $45,500 $35,000
Conversion costs added $209,650 $154,910
Required:
Prepare a production cost worksheet using weighted-average for the Mixing department and FIFO for the Bottling department assuming that spoilage is recognized.
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