Fill in the time line for Winter Lips.
2.	Use the time line to help you compute the total equivalent units and the cost per equivalent unit for June.
3.	Assign total costs to (a) units completed and transferred to Finished Goods and (b) units still in process at June 30.
4.	Prepare a T-account for work in process inventory to show activity during June, including the June 30 balance.

Winter Lips produces a lip balm used for cold-weather sports. The balm is manufactured in a single processing department. No lip balm was in process on May 31, and Winter Lips

started production on 20,900 lip balm tubes during June. Direct materials are added at the beginning of the process, but conversion costs are incurred evenly throughout the process. Completed production for June totalled 15,700 units. The June 30 work in process was 45% of the way through the production process. Direct materials costing $5,225 were placed in production during June, and direct labour of $3,360 and manufacturing overhead of $248 were assigned to the process.

Requirement 1. Fill in the time line for Winter LipsWinter Lips.

Start							Complete		Complete

Requirement 2. Use the time line to help you compute the total equivalent units for June.

Winter Lips
Lip Balm Department
Equivalent Unit Computation
Month Ended June 30
	Flow of	Equivalent Units
	Physical	Direct	Conversion
Flow of Production	Units	Materials	Costs
Units accounted for:
Total equivalent units

Compute the cost per equivalent unit. (For entries with a zero balance, make sure to enter "0" in the appropriate cell(s). Round the cost per equivalent unit to the nearest cent.)

Winter Lips
Lip Balm Department
Cost per Equivalent Unit
Month Ended June 30
	Direct	Conversion
Cost per Equivalent Unit:	Materials	Costs
Cost per equivalent unit

Requirement 3. Assign total costs to (a) completed and transferred out to Finished Goods and (b) the units still in process at June 30. (Enter quantities first, then the cost per equivalent unit amounts in the same order as calculated in the preceding step. Round your answers to the nearest whole dollar.)

Winter Lips
Lip Balm Department
Cost Assignment
Month Ended June 30
	Assign costs:	Direct Materials			Conversion Costs				Total
a.			x (		+		)
b.
			x
							x
	Total cost accounted for

Requirement 4. Prepare a T-account for Work in Process Inventory to show activity during June, including the June 30 balance. (For entries with a zero balance, make sure to enter "0" in the appropriate cell. Leave unused cells blank.)

Work in Process Inventory
Bal. June 1
Bal. June 30