Transferred-in costs, weighted-average method. (35-40 minutes)

Telemark-Kjemi, AS, manufactures an industrial solvent in two departments—mixing and cooking. This question focuses on the Cooking Department. During June 2001, 90 tonnes of solvent 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. Telemark-Kjemi uses the weighted-average process-costing method. The following information about the actual costs for June 2001 is available.  lo1

REQUIRED 1. Calculate the equivalent tonnes of solvent completed and transferred out and in ending work in progress for each cost element.
2. Calculate cost per equivalent unit for beginning work in progress and work done in current period.
3. Summarise total costs to account for and assign these costs to units completed (and transferred out) and to units in ending work in progress using the weighted-average method.

Transcribed Image Text:

TRANSFERRED-IN COSTS DIRECT MATERIALS CONVERSION COSTS EQUIVALENT TOTAL EQUIVALENT TOTAL EQUIVALENT TOTAL TONNES COSTS TONNES COSTS TONNES COSTS Work in progress, 1 June 40 NKr 40,000 0 NKr0 30 NKr 8,000 Work done in June 2001 80 NKr 87,200 90 NKr 36,000 75 NKr 49,725 Completed in June 2001 ? ? ? Work in progress, 30 June ? ? ? ?