Transferred-in costs, weighted-average method. Trendy Clothing, Inc. is a manufacturer of winter clothes. It has a knitting department and a nishing department. This exercise focuses on the nishing 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. HomeInsertPage LayoutFormulasDataReviewViewAPhysical Units Transferred-In(tons)DirectConversionCostsMaterialsCosts2 Work in process, beginning inventory (June 1)Degree of completion, beginning work in process4 Transferred-in during June5 Completed and transferred out during JuneWork in process, ending inventory (June 30)Degree of completion, ending work in process8 Total costs added during June60$ 60,000$24,0003100%0%50%10012040100%0%75%$117,000$27,000$62,4001. 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-incosts, direct materials, and conversion costs.3. Assign costs to units completed (and transferred out) and to units in ending work in process.Required6.

Equivalents units for production: The activity of a processing department in terms of fully…

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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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Transferred-in costs, weighted-average method. Trendy Clothing, Inc. is a manufacturer of winter clothes. It has a knitting department and a nishing department. This exercise focuses on the nishing 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.

Home
Insert
Page Layout
Formulas
Data
Review
View
A
Physical Units Transferred-In
(tons)
Direct
Conversion
Costs
Materials
Costs
2 Work in process, beginning inventory (June 1)
Degree of completion, beginning work in process
4 Transferred-in during June
5 Completed and transferred out during June
Work in process, ending inventory (June 30)
Degree of completion, ending work in process
8 Total costs added during June
60
$ 60,000
$24,000
3
100%
0%
50%
100
120
40
100%
0%
75%
$117,000
$27,000
$62,400
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.
Required
6.

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