Classic 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 Classic uses the FIFO method. The following information for June 2017 is available. B C D E Physical Units Transferred-In Direct Conversion (tons) Costs Materials Costs 2 Work in process, beginning inventory (June 1) 95 $ 70,500 $ 0 $ 38,000 3 Degree of completion, beginning work in process 100% 0% 40% 4 Transferred-in during June 175 5 Completed and transferred out during June 190 6 Work in process, ending inventory (June 30) 80 Degree of completion, ending work in process 100% 0% 75% 8 Total costs added during June 180,500 $ 52,250 $ 98,800 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 Costs Materials Physical Units (tons) Direct Conversion Costs 95 Work in process, beginning Transferred-in during current period 175 270 To account for Completed and transferred out during current period: From beginning work in process Started and completed Work in process, ending 95 0 95 57 95 95 95 95 80 80 0 60 270 Accounted for 175 190 212 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 Production Costs Costs 108,500 $ 70,500 $ 331,550 180,500 Direct Conversion Materials Costs 0 $ 38,000 52,250 98,800 Work in process, beginning Costs added in current period $ 440.050 $ 251,000 $ 52.250 $ 136.800 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.) Transferred-In Direct Conversion Materials Costs 180,500 $ Costs 98,800 $ 52,250 $ Costs added in current period Divide by equivalent units of work done in current period 175 190 212 1,031.43 $ 275.00 $ 466.04 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 Conversion Direct Materials Production Costs Costs Costs Completed and transferred out: Total from beginning inventory
