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atroni [7]
4 years ago
10

The Swiss Clock Shop manufactures clocks on a highly automated assembly line. Its costing system uses two cost categories, direc

t 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. Swiss Clock Shop uses weighted-average costing. Data for the Assembly Department for June 20X5 are: Work in process, beginning inventory 250 units Direct materials (100% complete) Conversion costs (50% complete) Units started during June 800 units Work in process, ending inventory: 150 units Direct materials (100% complete) Conversion costs (75% complete) Costs for June 20X5: Work in process, beginning inventory: Direct materials $180,000 Conversion costs $270,000 Direct materials costs added during June $1,000,000 Conversion costs added during June $1,000,000 What are the equivalent units for direct materials and conversion costs, respectively, for June?
Business
1 answer:
Georgia [21]4 years ago
7 0

Answer and Explanation:

The computation of the equivalent units for direct material and conversion cost is shown below:

                  Physical units         Direct Materials        Conversion Cost

Beginning

Work in process

100% and 50%  250

Units Started         800

Total Units

Under process  1,050

Less : Ending

Work in process      150

Units Transferred

to TestingDepartment  900          900                            900                  

Ending Work in process 150          150                             112.50

(100% and 75%)

Equivalent units ofproduction 1,050   1,050                    1,012.50

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