Question

Shiffon Electronics manufactures music player. Its costing system uses two cost​ categories, direct materials and conversion costs. Each product must pass through the Assembly​ Department, the Programming​ department, and the Testing Department. Direct materials are added at the beginning of the production process. Conversion costs are allocated evenly throughout production. Shiffon Electronics uses weightedminus−average costing. The following information is available for the month of March 2017 for the Assembly department. Work in​ process, beginning inventory 370370 units         Conversion costs ​(4040​% ​complete) Units started during March 850850 units Work in​ process, ending​ inventory: 100100 units         Conversion costs ​(6565​% ​complete) The cost details for the month of March are as​ follows: Work in​ process, beginning​ inventory:         Direct materials $ 350 comma 000$350,000         Conversion costs $ 367 comma 000$367,000 Direct materials costs added during March $ 700 comma 000$700,000 Conversion costs added during March $ 1 comma 123 comma 000$1,123,000 What amount of direct materials costs is assigned to the ending Workminus−inminus−Process account for​ March? ​(Round intermediary calculations to the nearest whole​ dollar.)

Answer 1

	Whole Units	Equivalent Units
		Direct Materials
Beginning work in process	370
Units started during March	850
Total units	1220
Units completed and transferred out	1120	100%	1120
Ending work in process	100	100%	100
Total units	1220		1220

	Direct Materials
Cost of beginning work in process	350000
Costs added during March	700000
Total costs $	1050000
÷ Equivalent units	1220
Cost per equivalent unit (rounded to nearest whole dollar) $	861

Direct materials cost assigned to ending work in process = 100 x $861 = $8610