Classic Clothing, Inc., is a manufacturer of winter clothes. It has a knitting d
ID: 2402873 • Letter: C
Question
Classic 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 Classic uses the FIFO method. The following information for June 2017 is available. ?(Click the icon to view the information.) Read the requirements. Requirement 1. Calculate equivalent units of work done in the current period (for transferred-in costs, direct materials, and conversion costs) to complete beginning work in process, to start and complete new units, and to produce ending work in process. (Enter a "O" for any zero balances.) Equivalent Units Physical Units Transferred-In Direct Conversion (tons) Costs Materials Costs Work in process, beginning Transferred-in during current period To account for Completed and transferred out during current period 60 100 From beginning work in process Started and completed Work in process, ending Accounted for Equivalent units of work done in current period 40Explanation / Answer
FIFO method Beggining units 60 Transferred out 120 Started into production 100 Ending units 40 160 160 Equivalent units Material Conversion Transferred in Beginning units 60 60 60 Completion in current period 100% 50% 0% A 60 30 0 Units started and completed 60 60 60 Completion 100% 100% 100% B 60 60 60 Ending Units 40 40 40 Completion 0% 75% 100% C 0 30 40 Total units A+B+C 120 120 100 Per unit cost Cost Total units Per unit cost Material cost 30000 120 250.00 Conversion cost 61200 120 510.00 transferred in 108000 100 1080.00 199200 Cost of goods sold Material convertion cost transferred in Beginning inventory completed Completion 100% 50% 0% Per unit cost 250.00 510.00 1080.00 Units 60 60 60 Total cost A 15000.00 15300 0 30300 Units started and completed Completion 100% 100% 100% Per unit cost 250.00 510.00 1080.00 Units 60 60 60 Total cost B 15000.00 30600 64800 110400 Beginning work in progress C 0 30000 39000 69000 Total cost A+B+C 30000 75900 103800 209700 Ending work in progress Completion 0% 75% 100% Per unit cost 250.00 510.00 1080.00 Units 40 40 40 Total cost 0 15300 43200 58500