Transferred-in costs, weighted-average method. Trendy Clothing, Inc. is a manufacturer of winter clothes. It has a knitting department and a finishing department. This exercise focuses on the finishing de- partment. 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 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 6 Work in process, ending inventory (June 30) Degree of completion, ending work in process 8 Total costs added during June 60 $ 60,000 $24,000 100% 0% 50% 100 120 40 100% 0% 75% $117,000 $27,000 $62,400

Transferred-in costs, weighted-average method. Trendy Clothing, Inc. is a manufacturer of winter clothes. It has a knitting department and a finishing department. This exercise focuses on the finishing de- partment. 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 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 6 Work in process, ending inventory (June 30) Degree of completion, ending work in process 8 Total costs added during June 60 $ 60,000 $24,000 100% 0% 50% 100 120 40 100% 0% 75% $117,000 $27,000 $62,400

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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Concept explainers

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.

Question

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

Transferred-in costs, weighted-average method. Trendy Clothing, Inc. is a manufacturer of winter
clothes. It has a knitting department and a finishing department. This exercise focuses on the finishing de-
partment. 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
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
6 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
100%
0%
50%
100
120
40
100%
0%
75%
$117,000
$27,000
$62,400

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