BUS-2003 Study Guide - Midterm Guide: Activity-Based Costing, Weighted Arithmetic Mean, Deutsche Luft Hansa

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Instructions: please answer the following questions on the examination test sheets. If you need more room, please use the back of the pages. Staffordville company produces baseball bats and cricket paddles. It has two departments that process all products, cutting and finishing. 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 ,000 for materials and ,000 for conversion costs. Ending work in process inventory in the cutting department was 40 percent complete. Direct materials are added at the beginning of the cutting process. Beginning work in process in the finishing department was 80 percent complete as to conversion. Direct materials for finishing the units are added at the end of the process. Beginning inventories included ,000 for transferred-in costs and ,000 for conversion costs. Ending work in process inventory for the finishing department was 30 percent converted.

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