Awesome Clothes has two departments. Other facts are as follows:
● In the first department, material is introduced at the beginning of the process.
● In the second department, material is introduced at the end of the process.
● Conversion costs are applied uniformly throughout both processes.
● As units are finished, they are transferred to finished goods.
● Additional data for August for the second department:

a. Trace the physical flow of the units.

b. Assume use of the weighted average method. Determine the equivalent units for each product cost.

c. Assume use of the weighted average method. Calculate the unit cost for each product cost.

d. Assume use of the weighted average method. Allocate the total costs between the finished goods and the ending work in process.

Transcribed Image Text:

Beginning Inventory August Activity Ending Inventory Units 8,000 units (60% complete) Transferred in 36,000 units 4,000 units (40% complete) Product Cost Direct materials Conversion costs Transferred in Beginning Inventory Current Costs Added in August $72,000 $126,400 $180,000 $0 $24,192 $40,000