Trendy 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. Trendy uses the FIFO method of process costing. The information for June 2018 is provided. (Click the icon to view the information.) 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. 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 complet beginning work in process, to start and complete new units, and to produce ending work in process June 2018 information X Hount in each input cell. For accounts Physical Units Transferred-in Direct Conversion (tonnes) Costs Materials Costs 70 $ 77,000 $ 0 $ 21,000 100% 0% 50% 135 Work in process, beginning inventory (June 1) Degree of completion, beginning work in process Transferred in during June Completed and transferred out during June Work in process, ending inventory (June 30) Degree of completion, ending work in process Total costs added during June 130 75 100% 0% 60% $ 130,000 $ 29,250 66,300 Transferred-in Direct Conversion Physical Units (tonnes) Costs Materials Costs 70 Work in process, beginning inventory (June 1) Transferred in during June 135 To account for Completed and transferred out during June: 70 From beginning work in process Started and completed 75 Work in process, ending inventory (June 30) Accounted for Work done to date Choose from any list or enter any number in the input fields and then continue to the next question. Requirement 2. Summarize total costs to account for, and calculate the cost per equivalent unit for transferred-in costs, direct materials, and conversion costs. Begin by summarizing the total costs to account for. (Enter an amount in each input cell. For accounts with a zero balance, make sure to enter "0" in the appropriate column) Total Transferred-in Direct Conversion Production Costs Costs Materials Costs Total costs to account for Begin by calculating the total from beginning inventory, and then calculate the total costs accounted for. (Enter an amount in each input cell. R appropriate column.) Total Transferred-in Direct Conversion Production Costs Costs Materials Costs Completed and transferred out: Total costs to account for Total costs of units completed and transferred out Total costs accounted for
