Question

Timekeeper Inc. manufactures clocks on a highly automated assembly line. Its costing system uses two cost categories, direct materials and conversion costs. Each product must pass through the Assembly Department and the Testing Department. Direct materials are added at the beginning of the production process. Conversion costs are allocated evenly throughout production. Timekeeper Inc. uses weighted-average costing.

Data for the Assembly Department for June 2015 are:

      Work in process, beginning inventory                               300 units

            Direct materials (100% complete)

            Conversion costs (50% complete)

      Units started during June                                                   950 units

      Work in process, ending inventory:                                   150 units

            Direct materials (100% complete)

            Conversion costs (75% complete)

Costs for June 2015:

      Work in process, beginning inventory:

            Direct materials                                                             $90,000

            Conversion costs                                                           $135,000

      Direct materials costs added during June                             $600,000

      Conversion costs added during June                                   $400,000

10) What are the equivalent units for direct materials and conversion costs, respectively, for June?

11) What is the total amount debited to the Work-in-Process account during the month of June?

A) $225,000

B) $1,000,000

C) $1,135,000

D) $1,225,000

12) What is the direct materials cost per equivalent unit during June?

13) What is the conversion cost per equivalent unit in June?

14) What amount of direct materials costs is assigned to the ending Work-in-Process account for June?

A) $82,800

B) $62,100

C) $37,240

D) $30,454

15) What amount of conversion costs is assigned to the ending Work-in-Process account for June

Answer 1

10) Equivalent unit of material = 1100+(150*100%) = 1250

Equivalent unit of conversion = 1100+(150*75%) = 1212.50

11) Total amount debited to WIP = Direct material+Conversion = 600000+400000 = 1000000

12) Direct material cost per equivalent unit = 690000/1250 = 552

13) Conversion Cost per equivalent unit = (135000+400000)/1212.50 = 441

14) Direct material cost assigned cost to Ending WIP = 552*150 = 828003

15) Conversion cost assigned to WIP = 112.50*441 = 49612 or 49613

answered by: anonymous