Timekeeper inc. manufactures clocks on a highly automated assembly line. Its costing system uses two cost categories,
Question:
Timekeeper inc. manufactures clocks on a highly automated assembly line. Its costing system uses two cost categories, direct materials, and conversion costs. Each product must pass through the assembly department and the testing department. Direct materials are added at the beginning of the production process. Conversion costs are allocated evenly throughout production. Timekeeper, inc. uses weighted-average costing.
Data for the Assembly Department for June 2020 are:
Work in process, beginning inventory 400 units
Direct materials (100% complete)
Conversion costs (60% complete)
Units started during June 980 units
Work in process, ending inventory: 240 units
Direct materials (100% complete)
Conversion costs (80% complete)
Costs for June 2020:
Work in process, beginning inventory:
Direct materials $94,000
Conversion costs $139,500
Direct materials costs added during June $604,000
Conversion costs added during June $400,000
What amount of conversion costs is assigned to the ending work-in-process account for June?