Question

Cozy 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. Suppose that Cozy uses the FIFO method. The following information for June 2017 is available.

Data Table A 1 B D E Physical Units Transferred-In Direct Conversion (tons) Costs Materials Costs 75$ 60,000 $ 0 $ 22,500 100% 0% 60% 3 135 2 Work in process, beginning inventory (June 1) Degree of completion, beginning work in process 4 Transferred-in during June 5 Completed and transferred out during June 6 Work in process, ending inventory (June 30) 7 Degree of completion, ending work in process 8 Total costs added during June 150 60 100% 0% 75% $ $ 135,000 $ 33,750 $ 78,000 Print Done
Please help me find the missing blanks. I have provided all information.

Once you have helped me find the missing blanks please try to help me find Started and Completed, Total Costs of units completed and transferred out, Work in process ending, Total costs accounted for (if possible).

Thank you.

Answer 1

Assigning Costs to units completed and transferred and Work in Process Total Transferred Production costs costs Direct Materials Conversion Costs 0 Completed and transferred out duringthe period: Working proceess beginning Costs added Working proceess beginning Total from beginning inventory 82500 32475 114975 60000 0 16875 16875 22500 15600 38100 60000 Started and completed 130875 75000 16875 39000 Work in process ending 83400 60000 0 23400 Total costs accounted for 329250 195000 33750 100500 Calculation of costs assigned Costs added Working proceess beginning Trnsferred in cost Material EQ.Units *Eq.per unit EQ.Units *Eq.per unit 0*1000=0 75*225=16875 75*1000=75000 75*225=16875 60*1000=60000 0*225 =0 Conversion EQ.Units *Eq.per unit 30*520=15600 75*520=39000 Started and completed Work in process ending 45*520=23400

Equvalent units and cost per equvalents are taken from the solution provided.