Problem:
Transferred-in costs, weighted-average method. Asaya 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. Asaya uses the weighted-average method of process costing. The following information for June 2012 is available.
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A
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B
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C
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D
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E
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1
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Physical Units (tons)
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Transferred-In Costs
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Direct Materials
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Conversion Costs
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2
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Work in process, beginning inventory (June 1)
|
75
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$ 75,000
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$ 0
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$30,000
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3
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Degree of completion, beginning work in process
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100%
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0%
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60%
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4
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Transferred in during June
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135
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|
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5
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Completed and transferred out during June
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150
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|
|
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6
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Work in process, ending inventory (June 30)
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60
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|
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7
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Degree of completion, ending work in process
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100%
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0%
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75%
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8
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Total costs added during June
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$142,500
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$37,500
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$78,000
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1. Calculate equivalent units of transferred-in costs, direct materials, and conversion costs. Required
2. Summarize total costs to account for, and calculate the cost per equivalent unit for transferred-in costs, direct materials, and conversion costs.
3. Assign total costs to units completed (and transferred out) and to units in ending work in process.