Question

Shiffon Electronics manufactures music player. Its costing system uses two cost categories, direct materials and conversion costs. Each product must pass through the Assembly Department, the Programming department, and the Testing Department. Direct materials are added at the beginning of the production process. Conversion costs are allocated evenly throughout production. Shiffon Electronics uses weighted-average costing.

The following information is available for the month of March 2015 for the Assembly department.

Work in process, beginning inventory 300 units
Conversion costs (30% complete)
Units started during April 800 units
Work in process, ending inventory: 100 units
Conversion costs (50% complete)

The cost details for the month of March are as follows:
Work in process, beginning inventory:
Direct materials $345,000
Conversion costs $360,000
Direct materials costs added during April $700,000
Conversion costs added during April $1,120,000


What amount of direct materials costs is assigned to the ending Work-in-Process account for March?

Question 25 options:

	$95,000
	$31,363
	$75,075
	$63,636

Answer 1

Correct answer------------$95,000

Working

Reconciliation of Units
A	Beginning WIP	300
B	Introduced	800
C=A+B	TOTAL	1,100
D	Transferred out	1,000
E=C-D	Ending WIP	100

.

Statement of Equivalent Units(Weighted average)
				Material		Conversion cost
	Units			Complete %	Equivalent units	Complete %	Equivalent units
Transferred out	1,000			100%	1,000	100%	1,000
Ending WIP	100			100%	100	50%	50
Total	1,100			Total	1,100	Total	1,050

.

Cost per Equivalent Units (Weighted average)
COST		Material	Conversion cost	TOTAL
Beginning WIP Inventory Cost		$ 345,000	$ 360,000	$ 705,000
Cost incurred during period		$ 700,000	$ 1,120,000	$ 1,820,000
Total Cost to be accounted for		$ 1,045,000	$ 1,480,000	$ 2,525,000
Total Equivalent Units		1,100	1,050
Cost per Equivalent Units		$               950.00	$             1,409.52	$       2,359.52

.

Statement of cost (Weighted average)-Partial
Cost	Equivalent Cost/unit	Ending WIP
		Units	Cost Allocated
Material	$ 950.00	100	$          95,000.00