Standard-costing method, assigning costs. Refer to the information in Exercise 17-22.

Suppose the Satellite Assembly Division uses the standard-costing method ofprocess costing.

Suppose further that the Satellite Assembly Division determines standard costs of $700,000 per (equivalent) unit for direct materials and $300,000 per (equivalent) unit for conversion costs for both beginning work in process and work done in the current period.

Required 1. Compute equivalent units for direct materials and conversion costs. Show physical units in the first column ofyour schedule.

2. Summarize total costs to account for, and assign these costs to units completed and trans-

-n ferred out, and to units in ending work in process.

/ j 3. Compute the total direct material and conversion cost variances for May 2006.

V7-27 Transferred-in costs, weighted-average method. (Chapter Appendix I) Flideo Chemicals L/ manufactures an industrial solvent in two departments—mixing and cooking. This question focuses on the Cooking Department. DuringJune 2007, 90 tonnes ofsolvent were completed and transferred out from the Cooking Department. Direct materials are added at one point in time during the process. Conversion costs are added uniformly during the process. Hideo Chemicals uses the weighted-average process costing method. The following information about the actual costs forJune 2007 is available.

Transferred-in Costs Direct Materials Conversion Costs Equivalent Tonnes Total Costs Equivalent Tonnes Total Costs Equivalent Tonnes Total Costs Work in process,June 1 40 $44,000 0 $ 0 30 $19,800.00 Work done in June 2007 80 $95,920 90 $39,600 75 $54,697.50 Completed in June 2007 ? ? ? ? ? ?

Work in process,June 30 ? p ? ? ? ?

Required 1. Calculate the equivalent tonnes of solvent completed and transferred out, and in ending work in process for each cost element.

2. Compute cost per equivalent unit for beginning work in process and work done in current period.

3. Summarize total costs to account for, and assign these costs to units completed (and trans¬

ferred out) and to units in ending work in process using the weighted-average method.