Question
In: Accounting
Timekeeper Inc. manufactures clocks on a highly automated assembly line. Its costing system uses two cost...
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 2017 are: Work in process, beginning inventory 340 units Direct materials (100% complete) Conversion costs (50% complete) Units started during June 950 units Work in process, ending inventory: 200 units Direct materials (100% complete) Conversion costs (75% complete) Costs for June 2017: Work in process, beginning inventory: Direct materials $94,000 Conversion costs $135,500 Direct materials costs added during June $602,500 Conversion costs added during June $402,000 What amount of direct materials costs is assigned to the ending Work-in-Process account for June? (Round intermediary calculations to the nearest whole dollar.) Select one: A. $108,000 B. $108,076 C. $77,389 D. $55,779
please explain in detail. thank you.
Solutions
Expert Solution
Answer is given below
Cost per equivalent unit is rounded off to nearet whole dollar
200 units * $540 per equivalent unit = $108,000
ekkarill92 answered 1 year agoRelated Solutions
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