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.

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.

Data Table 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 Total costs added during June Physical Units Transferred In Direct Conversion (tons) Costs Materials Costs 0 32.000 65,000 80 100% 0% 50% 145 160 65 100% 0% 60% 160,000 40,000 84,000