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Baxter Products manufactures office furniture by using an assembly-line process.

Baxter Products manufactures office furniture by using an assembly-line process. All direct materials are introduced at the start of the process, and conversion cost is incurred evenly throughout manufacturing. An examination of the company's Work-in-Process account for August revealed the following selected information:

Debit side—
August 1 balance: 600 units, 40% complete; cost, $44,600*
Production started: 1,800 units
Direct materials used during August: $90,000
August conversion cost: $51,400

Credit side—
Production completed: 1,400 units





*Supplementary records disclosed direct material cost of $30,000 and conversion cost of $14,600.

Conversations with manufacturing personnel revealed that the ending work in process was 80% complete.

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