‘Transferred-in costs, weighted-average method. Asaya Clothing Inc. is a manufacturer of 3, Total cost of work in process, winter clothes. It has a Knitting Department and a Finishing Department. This exercise focuses

$87,066 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 2010 is shown on the next page REQUIRED 1. Calculate equivalent units (tonnes) of transferred-in costs, direct materials, and conversion costs.

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 876 CHAPTER 17 process.LO1

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Work in process, beginning inventory (June 1) Degree of completion, beginning work in process Transferred in during June Completed and transferred out during June Work in process, ending inventory (June 30) Degree of completion, ending work in process Total costs added during June Physical Units Transferred-in Direct Conversion (tonnes) Materials Costs Costs 75 $75,000 $ 0 $30,000 100% 0% 60% 135 150 60 100% $142,500 0% 75% $37,500 $78,000