Chilly 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. Suppose that Chilly uses the FIFO method. The following information for June 2017 is available. Read the requirements2. Requirement 1. Calculate equivalent units of work done in the current period (for transferred-in costs, direct materials, and conversion costs) to complete beginning work in process, to start and complete new units, and to produce ending work in process. (Enter a "0" for any zero balances.) Equivalent Units Physical Units Transferred-In Direct Conversion (tons) Costs Materials Costs Work in process, beginning 60 Transferred-in during current period 100 To account for Completed and transferred out during current period: From beginning work in process Started and completed Work in process, ending 40 Accounted for Equivalent units of work done in current period Requirement 2. Summarize the total costs to account for, and calculate the cost per equivalent unit for transferred-in costs, direct materials, and conversion costs. Begin by summarizing the total costs to account for. (Enter a "0" for any zero balances.) Total Transferred-In Direct Conversion Production Costs Costs Materials Costs (1) (2) Total costs to account for Calculate the cost per equivalent unit for transferred-in costs, direct materials, and conversion costs. (Round your answers to the nearest cent.) Transferred-In Direct Conversion Costs Materials Costs (3) Divide by (4) Cost per equivalent unit Requirement 3. Assign costs to units completed (and transferred out) and to units in ending work in process. Begin by calculating the total from beginning inventory, then calculate the total costs accounted for. (Enter a "0" for any zero balances. Round your final answers to the nearest whole dollar.) Total Transferred-In Direct Conversion Production Costs Costs Materials Costs Completed and transferred out: (5) (6) Total from beginning inventory (7) Total costs of units completed and transferred out (8) Total costs accounted for 1: Data Table A B C D E 1 Physical Units (tons) Transferred-In Costs Direct Materials Conversion Costs 2 Work in process, beginning inventory (June 1) 60 $45,000 $0 $18,000 3 Degree of completion, beginning work in process 100% 0% 50% 4 Transferred-in during June 100 5 Completed and transferred out during June 120 6 Work in process, ending inventory (June 30) 40 7 Degree of completion, ending work in process 100% 0% 75% 8 Total costs added during June $120,000 $27,000 $61,200 2: Requirements 1. Calculate equivalent units of work done in the current period (for transferred-in costs, direct materials, and conversion costs) to complete beginning work in process, to start and complete new units, and to produce ending work in process. 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.

Chilly 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. Suppose that Chilly uses the FIFO method. The following information for June 2017 is available. Read the requirements2. Requirement 1. Calculate equivalent units of work done in the current period (for transferred-in costs, direct materials, and conversion costs) to complete beginning work in process, to start and complete new units, and to produce ending work in process. (Enter a "0" for any zero balances.) Equivalent Units Physical Units Transferred-In Direct Conversion (tons) Costs Materials Costs Work in process, beginning 60 Transferred-in during current period 100 To account for Completed and transferred out during current period: From beginning work in process Started and completed Work in process, ending 40 Accounted for Equivalent units of work done in current period Requirement 2. Summarize the total costs to account for, and calculate the cost per equivalent unit for transferred-in costs, direct materials, and conversion costs. Begin by summarizing the total costs to account for. (Enter a "0" for any zero balances.) Total Transferred-In Direct Conversion Production Costs Costs Materials Costs (1) (2) Total costs to account for Calculate the cost per equivalent unit for transferred-in costs, direct materials, and conversion costs. (Round your answers to the nearest cent.) Transferred-In Direct Conversion Costs Materials Costs (3) Divide by (4) Cost per equivalent unit Requirement 3. Assign costs to units completed (and transferred out) and to units in ending work in process. Begin by calculating the total from beginning inventory, then calculate the total costs accounted for. (Enter a "0" for any zero balances. Round your final answers to the nearest whole dollar.) Total Transferred-In Direct Conversion Production Costs Costs Materials Costs Completed and transferred out: (5) (6) Total from beginning inventory (7) Total costs of units completed and transferred out (8) Total costs accounted for 1: Data Table A B C D E 1 Physical Units (tons) Transferred-In Costs Direct Materials Conversion Costs 2 Work in process, beginning inventory (June 1) 60 $45,000 $0 $18,000 3 Degree of completion, beginning work in process 100% 0% 50% 4 Transferred-in during June 100 5 Completed and transferred out during June 120 6 Work in process, ending inventory (June 30) 40 7 Degree of completion, ending work in process 100% 0% 75% 8 Total costs added during June $120,000 $27,000 $61,200 2: Requirements 1. Calculate equivalent units of work done in the current period (for transferred-in costs, direct materials, and conversion costs) to complete beginning work in process, to start and complete new units, and to produce ending work in process. 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.

Name: Chilly Clothing, Inc., is a manufacturer of winter clothes. It has a
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Description: Chilly 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

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Chilly uses the FIFO method. The following information for June

2017 is available.

Read the requirements2.

Requirement 1. Calculate equivalent units of work done in the current period (for transferred-in costs, direct materials, and conversion costs) to complete beginning work in process, to start and complete new units, and to produce ending work in process. (Enter a "0" for any zero balances.)

		Equivalent Units
	Physical Units	Transferred-In	Direct	Conversion
	(tons)	Costs	Materials	Costs
Work in process, beginning	60
Transferred-in during current period	100
To account for
Completed and transferred out during current period:
From beginning work in process
Started and completed
Work in process, ending	40
Accounted for
Equivalent units of work done in current period

Requirement 2. Summarize the total costs to account for, and calculate the cost per equivalent unit for transferred-in costs, direct materials, and conversion costs.

Begin by summarizing the total costs to account for. (Enter a "0" for any zero balances.)

	Total	Transferred-In	Direct	Conversion
	Production Costs	Costs	Materials	Costs
(1)
(2)
Total costs to account for

Calculate the cost per equivalent unit for transferred-in costs, direct materials, and conversion costs. (Round your answers to the nearest cent.)

		Transferred-In	Direct	Conversion
		Costs	Materials	Costs
(3)
Divide by	(4)
Cost per equivalent unit

Requirement 3. Assign costs to units completed (and transferred out) and to units in ending work in process.

Begin by calculating the total from beginning inventory, then calculate the total costs accounted for. (Enter a "0" for any zero balances. Round your final answers to the nearest whole dollar.)

	Total	Transferred-In	Direct	Conversion
	Production Costs	Costs	Materials	Costs
Completed and transferred out:
(5)
(6)
Total from beginning inventory

(7)
Total costs of units completed and transferred out
(8)
Total costs accounted for

1: Data Table

	A	B	C	D	E
1		Physical Units (tons)	Transferred-In Costs	Direct Materials	Conversion Costs
2	Work in process, beginning inventory (June 1)	60	$45,000	$0	$18,000
3	Degree of completion, beginning work in process		100%	0%	50%
4	Transferred-in during June	100
5	Completed and transferred out during June	120
6	Work in process, ending inventory (June 30)	40
7	Degree of completion, ending work in process		100%	0%	75%
8	Total costs added during June		$120,000	$27,000	$61,200

2: Requirements

1.	Calculate equivalent units of work done in the current period (for transferred-in costs, direct materials, and conversion costs) to complete beginning work in process, to start and complete new units, and to produce ending work in process.
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.

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