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 complete beginning work in process, to start and complete new units, and to produce ending work in process. Physical Units Transferred-in Direct Conversion (tonnes) Costs Materials Costs Work in process, beginning inventory (June 1) 70 140 Transferred in during June To account for Completed and transferred out during June: From beginning work in process Started and completed 70 Enter any number in the edit fields and then click Check Answer. ? 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 complete beginning work in process, to start and complete new units, and to produce ending work in process. Physical Units Transferred-it June 2018 information (tonnes) Costs Work in process, beginning inventory (June 1) 70 140 Transferred in during June Physical Units Transferred-in Direct Conversion (tonnes) Costs Materials To account for Costs Work in process, beginning inventory (June 1) Completed and transferred out during June: 70 $ 77,000 $ 0 $ 28,000 From beginning work in process 70 Degree of completion, beginning work in process 100% 0% 50% Started and completed Transferred in during June 140 Completed and transferred out during June 145 Enter any number in the edit fields and then click Check Answer. Work in process, ending inventory (June 30) 65 Degree of completion, ending work in process 100% 0% 60% $ Total costs added during June remaining 126,440 $ 36,250 $ 76,125 4 parts
