Requirement 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

Mode 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 Mode uses the FIFO method. The following information for June 2017 is available. Physical Transferred-In Units (tons) Costs Direct Materials Conversion Costs 65 $ Work in process, beginning 2 inventory (June 1) Degree of completion, beginning work in process 50,000 $ 100% 0 $ 0% 19,500 40% 1101 Completed and transferred out 5 during June Work in process, ending 6 inventory (June 30) Degree of completion, ending work in process 8 Total costs added during June 100% 0% 123,500 $ 32,500 $ $ 68,900 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. Physical Units (tons) 65 Transferred-In Costs Direct Materials Costs Work in process, beginning Transferred-in during current period 175 To account for Completed and transferred out during current period: From beginning work in process Started and completed 0 0 Work in process, ending 175 Accounted for 110 1 30 131 Equivalent units of work done in current period