Question

Weighted Average Question: Each product must pass through the Assembly Department and the Testing Department The Tock Clock Company manufactures a single type of clock on a highly automated assembly line. Its costing system uses two cost categories, direct materials and conversion costs. Direct materials are added at the beginning of the production process. Conversion costs are allocated evenly throughout production. Tock Clock Company uses weighted-average costing. Data for the Assembly Department for June 2020 are: Work in process, beginning inventory 250 units Direct materials (100% complete) Conversion costs (50% complete) 800 units 150 units Units started during June Work in process, ending inventory: Direct materials (100% complete) Conversion costs (75% complete) Costs for June 2020: Work in process, beginning inventory: Direct materials $90,000 Conversion costs $135.000 Direct materials costs added during June $500,000 Conversion costs added during June $500.000 What amount of conversion costs are assigned to the ending Work-in-Process account for June? $509,78.32 $70,555.50 O $63,225.25 $90,074

Answer 1

Unit transferred out = 250+800-150 = 900

Equivalent unit of material = 900+150 = 1050

Equivalent unit of conversion = 900+(150*75%) = 1012.50

Cost per equivalent unit of material = (90000+500000)/1050 = 561.90

Cost per equivalent unit of conversion = (135000+500000)/1012.50 = 627.16

Cost of Conversion Cost in ending WIP = 112.50*627.16 = 70555.5

So answer is b) $70555.50