Question

Mode 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. Mode uses the weighted average method of process costing. The following information for June 2017 is available. (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 "0" for any zero balang S.) Equivalent Units Transferred-In Direct Physical Units (tons) Conversion Costs Costs Materials 105 Work in process, beginning inventory (June 1) Transferred in during June 145 To account for Completed and transferred out during June 210 Work in process, ending inventory (June 30) Accounted for Equivalent units work done to date

Answer 1

1.

		Equivalent Units
	Physical units	Transferred in cost	Direct material	Conversion costs
Work in process, beginning inventory (June 1)	105
Transferred in during June	145
To account for	250
Completed and transferred out during June	210	210	210	210
Work in process, ending inventory (June 30)	40	40	0	30
Accounted for	250
Equivalent units work done to date		250	210	240

2.

	Total cost	Transferred in cost	Direct material	Conversion cost
Work in process, beginning inventory (June 1)	$147,000	$105,000	$0	$42,000
Cost added during June	355,950	199,500	47,250	109,200
Total cost to account for	$502,950	$304,500	$47,250	$151,200

	Transferred in cost	Direct material	Conversion cost
Total cost to account for	$304,500	$47,250	$151,200
Equivalent units	250	210	240
Cost per unit	$1,218	$225	$630

3.

	Transferred in costs	Direct material	Conversion cost
Cost of units completed and transferred out	$255,780 (210*$1218)	$47,250 (210*$225)	$132,300 (210*$630)
Cost of units in ending work in process	48,720 (40*$1218)	0	18,900 (30*$630)
Total cost accounted for	$304,500	$47,250	$151,200