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 2017 are​:
Work in​ process, beginning inventory	310 units
Direct materials​ (100% complete)
Conversion costs​ (50% complete)
Units started during June	1040 units
Work in​ process, ending​ inventory:	160 units
Direct materials​ (100% complete)
Conversion costs​ (70% complete)
Costs for June 2017​:
Work in​ process, beginning​ inventory:
Direct materials	​$92,000
Conversion costs	​$139,000
Direct materials costs added during June	​$601,500
Conversion costs added during June	​$404,000

What amount of conversion costs is assigned to the ending​ Work-in-Process account for​ June? (Round any intermediary calculations to the nearest​ cent.)

A.

​$289.71

B.

​$404,000.00

C.

​$81,588.24

D.

​$46,709.60

Answer 1

Units completed	1190	=310+1040-160
Work in​ process, ending​ inventory	112	=160*70%
Equivalent units for Conversion costs	1302
Work in​ process, beginning​ Conversion costs	139000
Conversion costs added during June	404000
Total Conversion costs	543000
/ Equivalent units for Conversion costs	1302
Cost per Equivalent unit	417.05
Work in​ process, ending​ inventory units	112
X Cost per Equivalent unit	417.05
Conversion costs assigned to the ending​ Work-in-Process	46709.60
Option D $46,709.60 is correct