Weighted-Average Method The T. L. Lin Company manufactures a variety of natural fabrics forthe clothing industry in a suburb of Shanghai. The following data in Chinese currency called yuanpertain to the month of October.[LO 6-2, 6-3, 6-4]Work-in-Process Inventory, October 1 50,000 unitsDirect materials: 60% complete 55,440 yuanConversion: 30% complete 54,425 yuanCosts incurred during OctoberDirect materials 820,400 yuanConversion 1,350,600 yuanDuring October, 200,000 units were completed and transferred out. At the end of the month, 30,000units (direct materials 80% and conversion 50% complete) remain in Work-in-Process Inventory.Required Calculate each of the following amounts using weighted-average process costing.1. Equivalent units of direct materials and conversion.2. Costs per equivalent unit for direct materials and conversion.3. Cost of goods completed and transferred out during October.4. Cost of the Work-in-Process Inventory at October 31.5. Check the most recent issue of The Wall Street Journal or go to www.federalreserve.gov/releases/H10/hist/ to learn the exchange rate between the U.S. dollar and the Chinese yuan
Weighted-Average Method The T. L. Lin Company manufactures a variety of natural fabrics for
the clothing industry in a suburb of Shanghai. The following data in Chinese currency called yuan
pertain to the month of October.
[LO 6-2, 6-3, 6-4]
Work-in-Process Inventory, October 1 50,000 units
Direct materials: 60% complete 55,440 yuan
Conversion: 30% complete 54,425 yuan
Costs incurred during October
Direct materials 820,400 yuan
Conversion 1,350,600 yuan
During October, 200,000 units were completed and transferred out. At the end of the month, 30,000
units (direct materials 80% and conversion 50% complete) remain in Work-in-Process Inventory.
Required Calculate each of the following amounts using weighted-average
1. Equivalent units of direct materials and conversion.
2. Costs per equivalent unit for direct materials and conversion.
3. Cost of goods completed and transferred out during October.
4. Cost of the Work-in-Process Inventory at October 31.
5. Check the most recent issue of The Wall Street Journal or go to www.federalreserve.gov/releases/
H10/hist/ to learn the exchange rate between the U.S. dollar and the Chinese yuan
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