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	380 units
Direct materials​ (100% complete)
Conversion costs ​(55​% ​complete)
Units started during June	970 units
Work in​ process, ending​ inventory:	170 units
Direct materials​ (100% complete)
Conversion costs ​(70​% ​complete)
Costs for June 2017​:
Work in​ process, beginning​ inventory:
Direct materials	$93,000
Conversion costs	$137,000
Direct materials costs added during June	$600,500
Conversion costs added during June	$400,500

What amount of direct materials costs is assigned to the ending Work−in−Process account for​ June? ​(Round intermediary calculations to the nearest whole​ dollar.)

Answer 1

Ending work in process= $87,380

Working

Reconciliation of Units
A	Beginning WIP	380
B	Introduced	970
C=A+B	TOTAL	1,350
D	Transferred out	1,180
E=C-D	Ending WIP	170

.

Statement of Equivalent Units(Weighted average)
				Material		Conversion cost
	Units			Complete %	Equivalent units	Complete %	Equivalent units
Transferred out	1,180			100%	1,180	100%	1,180
Ending WIP	170			100%	170	70%	119
Total	1,350			Total	1,350	Total	1,299

.

Cost per Equivalent Units (Weighted average)
COST		Material	Conversion cost	TOTAL
Beginning WIP Inventory Cost		$ 93,000	$ 137,000	$ 230,000
Cost incurred during period		$ 600,500	$ 400,500	$ 1,001,000
Total Cost to be accounted for		$ 693,500	$ 537,500	$ 1,231,000
Total Equivalent Units		1,350	1,299
Cost per Equivalent Units		$               513.70	$                413.78	$           927.48

.

Statement of cost (Weighted average)
Cost	Equivalent Cost/unit	Ending WIP		Transferred
		Units	Cost Allocated	Units	Cost Allocated
Material	$ 513.70	170	$          87,329.63	1,180	$        606,170.37
Conversion cost	$ 413.78	119	$          49,239.80	1,180	$        488,260.20
TOTAL	$ 1,231,000	TOTAL	$ 136,569	TOTAL	$ 1,094,431