Question

Azule Co. manufactures in two sequential processes, cutting and binding. The two departments report the information below for a recent month. Cutting Binding Beginning work in process Transferred in from cutting dept $ 1,200 Direct materials $ 845 1,926 Conversion 2,600 3,300 Costs added during March Direct materials $ 8,240 $ 6,356 Conversion 11,100 18,575 Transferred in from cutting dept 15,685 Transferred to finished goods 30,000 Determine the ending balances in the Work in Process Inventory accounts of each department.

Answer 1

Answer:

Cutting Ending WIP 7,100

Binding Ending WIP 17,042

Explanation:

$\left[\begin{array}{ccc}-&Cutting&Binding&Beg WIP&&1,200&DM&8,45&1,926&Conversion&2,600&3,300&Cost added&&&DM&8,240&6,356&Conversion&11,100&18,575&Transferred-in&-15,685&15,685&Transferred FG&&-30,000&Ending WIP&7,100&17,042&\end{array}\right]$

We have to aknowledge the amount transferred from cutting to binding.

And the amount from biding to finished goods