Playtime Ltd.manufactures toys in two departments: Forming and Finishing.During August, the beginning WIP in the Forming Department was 38% complete with respect to conversion, direct materials are added at the beginning of the process.The beginning inventory in Forming included $36,400 for materials and $9,400 for conversion costs.Ending WIP in the Forming department was 70% complete.In the second department, Finishing, direct materials are added at the end of the process.Beginning WIP in Finishing was 22% complete with respect to conversion costs and ending WIP was 85% converted.Beginning WIP included $35,200 for transferred in costs and $12,350 for conversion costs.Additional information follows:
Required:
Prepare a production cost worksheet using weighted-average for the Forming department and FIFO for the Finishing department assuming the spoilage is recognized.

Question

Playtime Ltd.manufactures toys in two departments: Forming and Finishing.During August, the beginning WIP in the Forming Department was 38% complete with respect to conversion, direct materials are added at the beginning of the process.The beginning inventory in Forming included $36,400 for materials and $9,400 for conversion costs.Ending WIP in the Forming department was 70% complete.In the second department, Finishing, direct materials are added at the end of the process.Beginning WIP in Finishing was 22% complete with respect to conversion costs and ending WIP was 85% converted.Beginning WIP included $35,200 for transferred in costs and $12,350 for conversion costs.Additional information follows:
  Required:
Prepare a production cost worksheet using weighted-average for the Forming department and FIFO for the Finishing department assuming the spoilage is recognized.

Quizplus · Accepted Answer

The Answer of Playtime Ltd.manufactures toys in two departments: Forming and Finishing.During August, the beginning WIP in the Forming Department was 38% complete with respect to conversion, direct materials are added at the beginning of the process.The beginning inventory in Forming included $36,400 for materials and $9,400 for conversion costs.Ending WIP in the Forming department was 70% complete.In the second department, Finishing, direct materials are added at the end of the process.Beginning WIP in Finishing was 22% complete with respect to conversion costs and ending WIP was 85% converted.Beginning WIP included $35,200 for transferred in costs and $12,350 for conversion costs.Additional information follows:
  Required:
Prepare a production cost worksheet using weighted-average for the Forming department and FIFO for the Finishing department assuming the spoilage is recognized.