Asaya 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 Asaya uses the FIFO method. The following information for June 2017 is available. (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 * Requirements - X Direct Physical Units (tons) Transferred-In Costs Conversion Costs Materials Work in process, beginning 60 Transferred-in during current period 100 160 To account for Completed and transferred out during current period: From beginning work in process 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. Started and completed 120 Work in process, ending Print Done Accounted for Equivalent units of work done in current period Physical Units Transferred-In Direct Conversion (tons) Costs Materials Costs 60 $ 45,000 $ 0 $ 18,000 100% 0% 50% 100 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 120 100% 0% 30,000 $ 75% 62,400 Total costs added during June 114,000 $ Asaya 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 Asaya uses the FIFO method. The following information for June 2017 is available. (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 * Requirements - X Direct Physical Units (tons) Transferred-In Costs Conversion Costs Materials Work in process, beginning 60 Transferred-in during current period 100 160 To account for Completed and transferred out during current period: From beginning work in process 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. Started and completed 120 Work in process, ending Print Done Accounted for Equivalent units of work done in current period Physical Units Transferred-In Direct Conversion (tons) Costs Materials Costs 60 $ 45,000 $ 0 $ 18,000 100% 0% 50% 100 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 120 100% 0% 30,000 $ 75% 62,400 Total costs added during June 114,000 $
