Question

Azule Co. manufactures in two sequential processes, cutting and binding. The two departments report the information below for a recent month. Determine the ending balances in the Work in Process Inventory accounts of each department.

	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

Short answer

Ending inventory of cutting and bending is $7,100 and $17,042

Step-by-step solution

Meaning of Work-in-process.

Work in progress refers to items that have been partially completed but are still in the manufacturing process. These objects are in-between locales or separate workstations and are primarily undergoing a specific procedure in the manufacturing cycle.

Meaning of Process operation.

Manufacturing or processing operations include any method, process, action, operation, or treatment of manufacturing or processing, as well as product storage or handling before, during, or after manufacturing or processing.

Determining the ending balances in the Work in Process Inventory accounts of each department.

Dr.	Work-in-process-Cutting	Cr.
Beginning inventory	3,445
Direct materials	8,240
Conversion	11,100
	22,785
		15,685	Transferred to Binding
Ending inventory	7,100

Dr.	Work-in-process-Binding	Cr.
Beginning inventory	6,426
Transferred in	15,685
Direct materials	6,356
Conversion	18,575
	47,042
		30,000	Transferred to finished goods
Ending inventory	17,042