Referring to Exhibit 4-12. explain why the cost of direct material in the March 1 work in process is zero.

Data From Exhibit 4-12:-

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Work in process, March 1-10,000 units Transferred-in: 100% complete, cost of Direct material: none. Conversion: 20% complete, cost of Balance in work in process, March 1 Units transferred in from Cutting Department during March Units completed during March and transferred out to finished-goods inventory $61,000* Exhibit 4-12 Basic Data for Illustration- Stitching Department -0- 7,600* $68,600 40,000 units 30,000 units 20.000 units Work in process, March 31 Transferred in: 100% complete Direct material: none Conversion: 90% complete Costs incurred during March: Transferred in from Cutting Department (assumes that weighted-average method was used for Cutting Department) $290,400 Direct material $7,500 Conversion costs: Direct labor Applied manufacturing overhead Total conversion costs.. 'These costs were incurred during the prior month, February (Predetermined overhead rate) x (Direct-labor cost)=100% x $115,000 = $115,000 $115,000 115,000 $230,000 MVP Spets Fagupont many