Allure Clothing, Inc., 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. Suppose that Allure uses the FIFO method. The following information for June 2017 is available. 1(Click the icon to view the information.) Read the requirements? Requirement 1. Calculate equivalent units of work done in the current period (for transferred-in costs, direct materials, and conversion costs) to complete beginning work in process, to start and complete new units, and to produce ending work in process. (Enter a "0" for any zero balances.) Equivalent Units Transferred-In Direct Conversion Physical Units (tons) Costs Materials Costs Work in process, beginning 75 135 Transferred-in during current period To account for Completed and transferred out during current period: From beginning work in process Started completed Work in process, ending 60 Accounted for Equivalent units of work done in current period Requirement 2. Summarize the total costs to account for, and calculate the cost per equivalent unit for transferred-in costs, direct materials, and conversion costs. Begin by summarizing the total costs to account for. (Enter a "0" for any zero balances.) Total Transferred-In Direct Conversion Production Costs Costs Materials Costs (1) (2) Total costs to account for Calculate the cost per equivalent unit for transferred-in costs, direct materials, and conversion costs. (Round your answers to the nearest cent.) Direct Conversion Transferred-In Costs Materials Costs (3) Divide by (4) Cost per equivalent unit Requirement 3. Assign costs to units completed (and transferred out) and to units in ending work in process. Begin by calculating the total from beginning inventory, then calculate the total costs accounted for. (Enter a "0" for any zero balances. Round your final answers to the nearest whole dollar.) Total Transferred-In Direct Conversion Production Costs Costs Materials Costs Completed and transferred out: (5) (6) Total from beginning inventory (7) Total costs of units completed and transferred out (8) Total costs accounted for 1: Data Table B D Physical Units Transferred-In (tons) Costs 1 E Conversion Costs Direct Materials 75 $ 60,000 $ 0$ 22,500 100% 0% 60% 135 2 Work in process, beginning inventory (June 1) 3 Degree of completion, beginning work in process 4 Transferred-in during June 5 Completed and transferred out during June 6 Work in process, ending inventory (June 30) 7 Degree of completion, ending work in process 8 Total costs added during June 150 60 100% 0% 75% $ 150,000 $ 41,250 $ 76,500 2: Requirements 1. Calculate equivalent units of work done in the current period (for transferred-in costs, direct materials, and conversion costs) to complete beginning work in process, to start and complete new units, and to produce ending work in process. 2. Summarize the total costs to account for, and calculate the cost per equivalent unit for transferred-in costs, direct materials, and conversion costs. 3. Assign costs to units completed (and transferred out) and to units in ending work in process
