Question

E17-31 (similar to) Cool Clothing, Inc., is a manufacturer of winter clothes. It has a knitting department and a finishing department. This exercise evenly during the process. Cool uses the weighted average method of process costing. The following information for June 2 E: (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 "O" for an E quivalent Units Physical Units Transferred-In Direct Conversion (tons) Costs Materials Costs Work in process, beginning inventory (June 1) Transferred in during June 160 To account for Completed and transferred out during June Work in process, ending inventory (June 30) Accounted for Equivalent units work done to date

Answer 1

Solution 1:

Computation of Equivalent unit of Production - Finishing Department
Particulars	Physical Units	Transferred in cost	Material	Conversion
Units to account for:
Beginning WIP	75
Started into Production	160
Total units to account for	235
Unit completed & Transferred out	170	170	170	170
Closing WIP:	65
Transferred In cost (100%)		65
Material (0%)			0
Conversion (60%)				39
Equivalent units of production	235	235	170	209

Solution 2:

Computation of Cost per equivalent unit of Production - Finishing Department
Particulars	Transferred in cost	Material	Conversion
Opening WIP	$75,000.00	$0.00	$30,000.00
Cost Added during March	$161,500.00	$46,750.00	$90,100.00
Total cost to be accounted for	$236,500.00	$46,750.00	$120,100.00
Equivalent units of production	235	170	209
Cost per Equivalent unit	$1,006.38	$275.00	$574.64

Solution 3:

Computation of Cost of ending WIP and units completed & transferred out - Finishing Department
Particulars	Transferred in cost	Material	Conversion	Total
Equivalent unit of Ending WIP	65	0	39
Cost per equivalent unit	$1,006.38	$275.00	$574.64
Cost of Ending WIP (Equivalent unit * Cost per equivalent unit)	$65,415	$0	$22,411	$87,826
Units completed and transferred	170	170	170
Cost of units completed & Transferred (Unit completed * cost per equivalent unit)	$171,085	$46,750	$97,689	$315,524