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Fashion Clothing Inc is a manufacturer of winter clothes. It has a Knitting Department and a finish department. Material cost is usually added at the
Fashion Clothing Inc is a manufacturer of winter clothes. It has a Knitting Department and a finish department. Material cost is usually added at the end of processing the products. Apart from di material and conversion costs, the knitting department also incurs transferred-in costs They use weighted-average method for process costing. The following information for the month of June 2 is available from Knitting Department. Transferred- in cost $75,000 Direct Material $000 Conversion Cost $30,000 100% 0% 50% Physical Units Work-In Process, Beginning 75 Inventory Degree of Completion, beginning work in process Transferred in during June 135 Completed and transferred out 150 during June Work-In-Process, ending 60 Inventory (June 30) Degree of Completion, ending work in process Total costs added during June 100% 0% 75% $142,500 $37,500 $78,000 (a) Determine the equivalent units of transferred-in costs, direct materials, and conversion costs (3 marks) (b)Compute the cost per equivalent unit for transferring costs, direct material, and conversion cost. (3 marks) (c) Determine the total cost of ending work in process inventory and the total cost of units
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