Swingtown Sports, which producesbasketballs, has twodepartments: cutting and stitching. Each department has onedirect-cost category(direct materials) and oneindirect-cost category(conversion costs). This problem focuses on the stitching department. Basketballs that have undergone the cutting process are immediately transferred to the stitching department. Direct material is added when the stitching process is 90% complete. Conversion costs are added evenly during stitching operations. When those operations aredone, the basketballs are immediately transferred to Finished Goods. Swingtown Sports uses theweighted-average method of process costing. The following is a summary of the March 2017 operations of the stitchingdepartment:

Read the requirements2.

Requirement 1. Summarize total binding department costs for April 2017, and assign these costs to units completed(and transferredout) 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 zerobalance, make sure to enter"0" in the appropriatecell.)

Equivalent Units

Physical Units

Transferred-In

Direct

Conversion

(books)

Costs

Materials

Costs

Beginning work in process

20,000

Transferred in during March

80,000

To account for

Completed and transferred out during March

60,000

Ending work in process

40,000

Accounted for

Equivalent units of work done to date

Summarize total costs to accountfor, and calculate the cost per equivalent unit fortransferred-in costs, directmaterials, and conversion costs. Begin by summarizing the total costs to account for. (For amounts with a zerobalance, make sure to enter"0" in the appropriatecell.)

Total

Transferred-In

Direct

Conversion

Production Costs

Costs

Materials

Costs

(1)

(2)

Total costs to account for

Calculate the cost per equivalent unit fortransferred-in costs, directmaterials, and conversion costs. (Round your answers to the nearestcent.)

Transferred-In

Direct

Conversion

Costs

Materials

Costs

(3)

Divide by

(4)

Cost per equivalent unit

Assign total costs to units completed(and transferredout) and to units in ending work in process. (For amounts with a zerobalance, make sure to enter"0" in the appropriatecell.)

Total

Transferred-In

Direct

Conversion

Production Costs

Costs

Materials

Costs

Assignment of costs:

Completed and transferred out

Ending work in process

Total costs to account 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 debitsfirst, then credits. Exclude explanations from any journalentries.)

Begin by recording the transfer from the cutting department to the stitching department.

Journal Entry

Date

Accounts

Debit

Credit

(5)

(6)

(7)

(8)

Now record the transfer from the stitching department to Finished Goods.

Journal Entry

Date

Accounts

Debit

Credit

(9)

(10)

(11)

(12)

1: Data Table

A

B

C

D

E

1

Physical Units (basketballs)

Transferred-In Costs

Direct Materials

Conversion Costs

2

Beginning work in process

20,000

$

50,000

$

0

$

22,000

3

Degree of completion, beginning work in process

100%

0%

50%

4

Transferred in during March 2017

80,000

5

Completed and transferred out during March 2017

60,000

6

Ending work in process, March 31

40,000

7

Degree of completion, ending work in process

100%

0%

25%

8

Total costs added during March

$

165,000

$

30,000

$

90,000

2: Requirements1.

Summarize total stitching department costs for March 2017, and assign these costs to units completed(and transferredout) and to units in ending work in process.

2.

Prepare journal entries for March transfers from the cutting department to the stitching department and from the stitching department to Finished Goods.