Question
Japan SS Ltd manufactures premium knives on a highly automated assembly line. Its costing system uses two cost categories, direct materials and conversion costs. Each
Japan SS Ltd manufactures premium knives on a highly automated assembly line.
Its costing system uses two cost categories, direct materials and conversion costs.
Each product must pass through the Assembly Department and the Testing Department.
Direct materials are added at the beginning of the production process.
Conversion costs are allocated evenly throughout production.
Data for the Assembly Department for June 2021:
Work-In-Process, beginning Inventory: Direct Materials 100% complete Conversion Costs 50% complete | 250 units |
Units Started during June | 800 units |
Work-in-process, ending inventory: Direct materials (100% complete) Conversion costs (80% complete) | 150 units
|
Units started during June | 800 units |
Work-in-process, ending inventory: Direct materials (100% complete) Conversion costs (80% complete) | 150 units |
Costs for June 2021: | |
Work-in-process, beginning inventory:
| Direct materials $260,000 Conversion costs $250,000 |
Direct materials costs added during June | $1,000,000 |
Conversion costs added during June | $657,800 |
Required:
Calculate the amount assigned to Ending Work in Process (WIP) and Finished Goods (FG) in the Assembly Department for June 2021.
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