Question

E17-31 (similar to) Question Help Chilly 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 ni added at the end of the process. Conversion costs are added evenly during the process. Chilly uses the weighted average method of process costing. The following information for June 2017 is available (Click the icon to view the information) Read the requirements

Answer 1

1. Statement showing Computation of Equivalent Unit- Weighted Average
Particular	Whole units	Materials	Conversion	Transfer In cost
Beginning WIP inventory	90	90	90	90
Started & completed (185-90)	95	95	95	95
Ending inventory	65	0	39	65
Units accounted for	250	185	224	250
Equivalent Unit of Production
	Materials	Conversion	Transfer In
Equivalent units of production	185	224	250
part-2 Statement showing Cost per Equivalent Unit
Particular	Total	Material	Conversion	Transfer In cost
Beginning WIP inventory	$135,000.00		$36,000.00	99000
Current costs incurred	$307,100.00	$46,250.00	$94,350.00	166500
Total cost to account for (a)	$442,100.00	$46,250.00	$130,350.00	$265,500.00
Equivalent units (b)		185	224	250
Cost per Equivalent unit  (a/b)		$250.00	$581.92	$1,062.00

Part-3
Computation of Ending WIP
Material
Conversion (39*581.92)	$22,694.87
Transfer in Cost (65*1062)	$69,030.00
Total Ending Work in process	$91,724.87
Computation of Cost of units completed and transferred
Material (185*250)	$46,250.00
Conversion (185*581.92)	$107,655.20
Transfer in Cost (185*1062)	$196,470.00
Total cost of Unit completed & Trf Out	$350,375.20