Asaya 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. Asaya uses the weighted-average method of process costing. The information for June 2012 is shown below.

REQUIRED
1. Calculate equivalent units (tonnes) of transferred-in costs, direct materials, and conversion costs.
2. Summarize total costs to account for, and calculate the cost per equivalent unit for transferred-in costs, direct materials, and conversion costs.
3. Assign total costs to units completed (and transferred out) and to units in ending work in process.

Transcribed Image Text:

Physical Units Transferred-in Direct Conversion (tonnes) Costs Materials Costs $75,000 0 Work in process, beginning inventory une 1) Degree of completion, beginning work 75 $30,000 100% 1% n process Transferred in during June Completed and transferred out during June Work in process, ending inventory June 30) Degree of completion, ending work in process Total costs added during June 135 150 60 100% 0% 75% S142,500 $37,500 $78,000