1. Calculate equivalent units of transferred-in costs, direct materials, and con
ID: 2391151 • Letter: 1
Question
1.
Calculate equivalent units of transferred-in costs, direct materials, and conversion costs.
2.
Summarize the total costs to account for, and calculate the cost per equivalent unit for transferred-in costs, direct materials, and conversion costs.
3.
Assign costs to units completed (and transferred out) and to units in ending work in process.
1.
Calculate equivalent units of transferred-in costs, direct materials, and conversion costs.
2.
Summarize the total costs to account for, and calculate the cost per equivalent unit for transferred-in costs, direct materials, and conversion costs.
3.
Assign costs to units completed (and transferred out) and to units in ending work in process.
Trendy Clothing, Inc., is a manufacturer of winter clothes. It has a knitting department and a finishing department. This exercise focuses on the finishing department. Direct materials are added at the end of the process. Conversion costs are added evenly during the process. Trendy uses the weighted-average method of process costing. The following information for June 2017 is available. EEB (Click the icon to view the information.) Read the requirements. Requirement 1. Calculate equivalent units of transferred-in costs, direct materials, and conversion costs. (Enter a "O" for any zero balances.) Equivalent Units Physical Units Transferred-In Direct Conversion (tons) Costs Materials Costs Work in process, beginning inventory (June 1) Transferred in during June To account for Completed and transferred out during June Work in process, ending inventory (June 30) Accounted for Equivalent units work done to date 90 125 165 50Explanation / Answer
Costs Charged to Production Costs of Beginning WIP 117,000 Costs incurred this period 282,150 Total Costs to account for 399,150 Total costs accounted for 399,150 Difference due to rounding cost/unit - Unit Reconciliation Units to account for: Beginning WIP 90 Started into Production 125 Total units to account for 215 Total units accounted for Completed during the period 165 Ending WIP 50 Total units accounted for 215 Equivalent Units of Production (EUP) - Weighted Average Method Units % Transferred in EUP - Transferred in % Material EUP-Materials % Conversion EUP-Conversion Completed during the period 165 100% 165.00 100% 165.00 100% 165.00 Ending WIP 50 100% 50.00 0% - 70% 35.00 Equivalent Units of Production (EUP) 215.00 165.00 200.00 Cost per EUP Mixing Materials Conversion Beginning WIP 90,000 - 27,000 Cost Incurred during the period 156,750 41,250 84,150 Total Costs Costs 246,750 Costs 41,250 Costs 111,150 Equivalent Units of Production (EUP) EUP 215.00 EUP 165.00 EUP 200.00 Cost per Equivalent Units of Production 1,147.67 250.00 555.75 Cost Assignment and Reconciliation Costs Transferred Out EUP Cost per EUP Total Cost Transferred in 165.00 1,147.67 189,366.28 Direct Materials 165.00 250.00 41,250.00 Conversion 165.00 555.75 91,698.75 Total transferred Out 322,315.03 Costs of Ending WIP EUP Cost per EUP Total Cost Transferred in 50.00 1,147.67 57,383.72 Direct Materials - 250.00 - Conversion 35.00 555.75 19,451.25 Total Ending WIP 76,834.97 Total costs accounted for 399,150.00 Answer 1. Transferred in Material Conversion Equivalent Units 215.00 165.00 200.00 Answer 2. Transferred in Material Conversion Cost per Equivalent Units 1,147.67 250.00 555.75 Answer 3. Transferred in Material Conversion Total Cost of Units Completed 189,366.28 41,250.00 91,698.75 322,315.03 Cost of Ending WIP 57,383.72 - 19,451.25 76,834.97
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