=+5-35 KK Transferred-in costs, weighted-average method OBJECTIVES 8, 9 Asaya Clothing Pty Ltd 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 Clothing uses the weighted-average method of process costing. The following information for June 2014 is available:

1 2

3 4

5 6

7 8

A B C D E Physical units

(tonnes)

Transferred-in costs Direct materials Conversion costs Work in process, beginning inventory (1 June) 75 ssecorp ni krow gninnigeb ,noitelpmoc fo eergeD %001 %0 %06 enuJ gnirud niderrefsnarT 531 Completed and transferred out during June 150 Work in process, ending inventory (30 June) 60 ssecorp ni krow gnidne ,noitelpmoc fo eergeD %001 %0 %57 00087$00573$005241$

$ $

enuJ gnirud dedda stsoc latoT 75 000 0 $30 000 1 Calculate equivalent units of transferred-in costs, direct materials and conversion costs.

2 Summarise 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.