Skoolzone Sports, which produces basketballs, has two departments: cutting and stitching. Each department has one direct-cost category (direct materials) and one indirect-cost category (conversion costs). This problem focuses on the stitching department. (Click the icon to view Skoolzone Sports' process costing information.) The following is a summary of the March 2017 operations of the stitching department. (Click the icon to view the information.) (Click the icon to view the total costs assigned under the weighted average method.) i More Info pse cost i Data Table ramoun uivalent A Din Basketballs that have undergone the cutting process are immediately transferred to the stitching department. Direct material is added when the stitching process is 85% complete. Conversion costs are added evenly during stitching operations. When those operations are done, the basketballs are immediately transferred to Finished Goods. Skoolzone Sports uses the FIFO method of process costing. B D E Physical Units Transferred-In Direct Conversion (basketballs) Costs Materials Costs 50,000 $ 60,000 $ 0$ 24,000 1 Match 100% 0% 50% Weighted-average assignment of costs - Beginning work in process Degree of completion, beginning work in process Transferred in during March 2017 Completed and transferred out during March 2017 Ending work in process, March 31 Degree of completion, ending work in process Total costs added during March 70,000 100,000 Total Transferred-In Direct Conversion 20,000 Production Costs Costs Materials Costs 100% 0% 40,000 $ 25% 60,0001 S 210,000 $ Assignment of costs: Completed and transferred out Ending work in process $ 40,000 $ 345,000 $ 49,000 225,000 $ 45,000 80,000 4,000 0 Print Done Total costs to account for 394,000 $ 270.000 $ 40,000 $ 84,000 ? Screenshot Print Done Requirement 1. Summarize total stitching department costs for March 2017, and assign these costs to units completed (and transferred out) and to units in ending work in process. Begin by completing the following table to summarize the physical and equivalent units. (For amounts with a zero balance, make sure to enter "0" in the appropriate cell.) Equivalent Units Physical Transferred-In Direct Conversion Units Costs Materials Costs Work in process, beginning 50,000 70,000 Transferred-in during current period 120000 To account for Completed and transferred out during current period: From beginning work in process Started and completed 50,000 Work in process, ending 20,000 Accounted for Equivalent units of work done in current period Next summarize the total costs to account for. (For amounts with a zero balance, make sure to enter "0" in the appropriate cell.) Total Transferred-In Direct Conversion Production Costs Costs Materials Costs Total costs to account for Calculate the cost per equivalent unit for transferred-in costs, direct materials, and conversion costs. (Round your answers to the nearest cent.) Transferred-In Direct Conversion Costs Materials Costs Divide by Cost per equivalent unit Assign total costs to units completed (and transferred out) and to units in ending work in process. Begin by calculating the total from beginning inventory, then calculate the total costs accounted for. (For amounts with a zero balance, make sure to enter "0" in the appropriate cell.) Assign total costs to units completed (and transferred out) and to units in ending work in process. Begin by calculating the total from beginning inventory, then calculate the total costs accounted for. (For amounts with a zero balance, make sure to enter "O" in the appropriate cell.) Total Transferred-In Direct Conversion Production Costs Costs Materials Costs Completed and transferred out: Total from beginning inventory MI Total costs of units completed and transferred out Total costs accounted for Requirement 2. Prepare journal entries for March transfers from the cutting department to the stitching department and from the stitching department to Finished Goods. (Record debits first, then credits. Exclude explanations from any journal entries.) Requirement 2. Prepare journal entries for March transfers from the cutting department to the stitching department and from the stitching department to Finished Goods. (Record debits first, then credits. Exclude explanations from any journal entries.) Begin by recording the transfer from the cutting department to the stitching department. Journal Entry Date Accounts Debit Credit Now record the transfer from the stitching department to Finished Goods. Journal Entry Date Accounts Debit Credit Requirement 3. Explain any difference between the cost of work completed and transferred out and the cost of ending work in process in the stitching department under the weighted average method and the FIFO method. The FIFO work in process ending inventory is than the weighted-average work in process ending inventory. This is because FIFO assumes that all the in work in process are the first to be completed and transferred out while ending work in process consists of only the The weighted-average method by assuming that are completed and transferred out, while in beginning work in process are placed in ending work in process. Hence, in this case, the weighted-average method results in a cost of units completed and transferred out and a Vending work-in-process inventory relative to FIFO. Skoolzone Sports, which produces basketballs, has two departments: cutting and stitching. Each department has one direct-cost category (direct materials) and one indirect-cost category (conversion costs). This problem focuses on the stitching department. (Click the icon to view Skoolzone Sports' process costing information.) The following is a summary of the March 2017 operations of the stitching department. (Click the icon to view the information.) (Click the icon to view the total costs assigned under the weighted average method.) i More Info pse cost i Data Table ramoun uivalent A Din Basketballs that have undergone the cutting process are immediately transferred to the stitching department. Direct material is added when the stitching process is 85% complete. Conversion costs are added evenly during stitching operations. When those operations are done, the basketballs are immediately transferred to Finished Goods. Skoolzone Sports uses the FIFO method of process costing. B D E Physical Units Transferred-In Direct Conversion (basketballs) Costs Materials Costs 50,000 $ 60,000 $ 0$ 24,000 1 Match 100% 0% 50% Weighted-average assignment of costs - Beginning work in process Degree of completion, beginning work in process Transferred in during March 2017 Completed and transferred out during March 2017 Ending work in process, March 31 Degree of completion, ending work in process Total costs added during March 70,000 100,000 Total Transferred-In Direct Conversion 20,000 Production Costs Costs Materials Costs 100% 0% 40,000 $ 25% 60,0001 S 210,000 $ Assignment of costs: Completed and transferred out Ending work in process $ 40,000 $ 345,000 $ 49,000 225,000 $ 45,000 80,000 4,000 0 Print Done Total costs to account for 394,000 $ 270.000 $ 40,000 $ 84,000 ? Screenshot Print Done Requirement 1. Summarize total stitching department costs for March 2017, and assign these costs to units completed (and transferred out) and to units in ending work in process. Begin by completing the following table to summarize the physical and equivalent units. (For amounts with a zero balance, make sure to enter "0" in the appropriate cell.) Equivalent Units Physical Transferred-In Direct Conversion Units Costs Materials Costs Work in process, beginning 50,000 70,000 Transferred-in during current period 120000 To account for Completed and transferred out during current period: From beginning work in process Started and completed 50,000 Work in process, ending 20,000 Accounted for Equivalent units of work done in current period Next summarize the total costs to account for. (For amounts with a zero balance, make sure to enter "0" in the appropriate cell.) Total Transferred-In Direct Conversion Production Costs Costs Materials Costs Total costs to account for Calculate the cost per equivalent unit for transferred-in costs, direct materials, and conversion costs. (Round your answers to the nearest cent.) Transferred-In Direct Conversion Costs Materials Costs Divide by Cost per equivalent unit Assign total costs to units completed (and transferred out) and to units in ending work in process. Begin by calculating the total from beginning inventory, then calculate the total costs accounted for. (For amounts with a zero balance, make sure to enter "0" in the appropriate cell.) Assign total costs to units completed (and transferred out) and to units in ending work in process. Begin by calculating the total from beginning inventory, then calculate the total costs accounted for. (For amounts with a zero balance, make sure to enter "O" in the appropriate cell.) Total Transferred-In Direct Conversion Production Costs Costs Materials Costs Completed and transferred out: Total from beginning inventory MI Total costs of units completed and transferred out Total costs accounted for Requirement 2. Prepare journal entries for March transfers from the cutting department to the stitching department and from the stitching department to Finished Goods. (Record debits first, then credits. Exclude explanations from any journal entries.) Requirement 2. Prepare journal entries for March transfers from the cutting department to the stitching department and from the stitching department to Finished Goods. (Record debits first, then credits. Exclude explanations from any journal entries.) Begin by recording the transfer from the cutting department to the stitching department. Journal Entry Date Accounts Debit Credit Now record the transfer from the stitching department to Finished Goods. Journal Entry Date Accounts Debit Credit Requirement 3. Explain any difference between the cost of work completed and transferred out and the cost of ending work in process in the stitching department under the weighted average method and the FIFO method. The FIFO work in process ending inventory is than the weighted-average work in process ending inventory. This is because FIFO assumes that all the in work in process are the first to be completed and transferred out while ending work in process consists of only the The weighted-average method by assuming that are completed and transferred out, while in beginning work in process are placed in ending work in process. Hence, in this case, the weighted-average method results in a cost of units completed and transferred out and a Vending work-in-process inventory relative to FIFO