Otylia Manufacturing Company assembles its product in several departments. It has two departments that process all units. During February, 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 $12,000 for materials and $3,000 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 75% complete as to conversion. Beginning inventories included $16,000 for transferred-in costs and $20,000 for conversion costs. Ending inventory was 25% complete. Additional information about the two departments follows:
| | Cutting | Finishing |
| Beginning work-in-process units | 20,000 | 20,000 |
| Units started this period | 40,000 | 50,000 |
| Units transferred this period | 50,000 | |
| Ending work-in-process units | 10,000 | 20,000 |
| Material costs added | $42,000 | $28,000 |
| Direct manufacturing labor | $18,700 | $40,000 |
| Other conversion costs | $21,500 | $24,000 |
Required:
Prepare a production cost worksheet using weighted-average for the cutting department.
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