Process costingTerry's T's (TT) makes a line of colourful T-shirts with a collar that can be pulled up and worn as a COVID mask. Terry, the owner of TT guarantees that the mask on each T-shirt has been certified as COVID safe.

The manufacturing process of making the T-shirts takes place in three departments; Cutting, Sewing, and Notions. In the Cutting department, the fabric is put into production at the beginning of the process where it is cut and prepared for sewing. Conversion costs are added evenly throughout the process. The following data relate to March production in the Cutting department:

Costs:

Fabric cost in beginning

work-in-process $1,490

Conversion cost in beginning

work-in-process$528

Fabric costs added in March$11,600

Conversion costs added in March$6,906

Flow of physical units in March

Beginning work-in-process inventory1,000 T-shirts, 60% complete (conversion cost)

T-shirts placed in production 7,500

Ending work-in-process inventory300 T-shirts, 20% complete (conversion cost)

Required:

a. Using the weighted-average method determine the assignment of costs to T-shirts transferred-out to the Sewing department and ending inventory in the Cutting department. Use the form on the next page. (10 marks)

b. Prepare the journal entry to transfer the cost of the units completed in March to the Sewing department work-in-process inventory. (use the space provided below)

c. Compare the actual cost per equivalent unit for direct materials in beginning inventory with the actual cost per equivalent unit for direct materials added for the period. (calculate each cost to 4 decimals)

d. Calculate the transferred-in cost per unit in the Sewing department.