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Please answer 17-25. Thank you 17-24 Transferred-in costs, weighted-average method. Asaya Clothing Inc. is a manufacturer of winter clothes. It has a knitting department and
Please answer 17-25.
Thank you
17-24 Transferred-in costs, weighted-average method. 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. Asaya uses the weighted-average method of process costing. The information for June 2018 is shown below. Physical Units Transferred-in Direct Conversion (tonnes) Costs Materials Costs Work in process, beginning inventory (June 1) 75 $ 75,000 $ 0 $30,000 Degree of completion, beginning work in process 100% 60% Transferred in during June 135 Completed and transferred out during June 150 Work in process, ending inventory (June 30) 60 Degree of completion, ending work in process 100% 75% Total costs added during June $142,500 $37,500 $78,000 0% 0% Required 1. Calculate equivalent units (tonnes) of transferred-in costs, direct materials, and conversion costs. 2. Summarize total costs to account for, and calculate the cost per equivalent unit for transferred-in costs, direct materials, and conversion costs. 3. Assign total costs to units completed (and transferred out) and to units in ending work in process. 17-25 Transferred-in costs, FIFO method. Refer to the information in Exercise 17-24. Suppose that Asaya uses the FIFO method instead of the weighted-average method in all of its departments. The only changes to Exercise 17-24 under the FIFO method are that the total transferred-in costs of beginning work in process on June 1 are $60,000 (instead of $75,000) and total transferred-in costs added during June are $130,800 (instead of $142,500) Required Do Exercise 17-24 using the FIFO method. Note that you first need to calculate the 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 processStep by Step Solution
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