The equivalent units of transferred in costs, direct material and conversion costs for June 2014. Given information: Beginning: Degree of completion: transferred in costs 100%, direct material 0%; conversion costs; 50%. Ending: Degree of completion: transferred in costs 100%, direct material 0%; conversion costs; 75%. Total cost added during June is 27,000.Beginningtransferredincostis60,000. Total transferred in cost added during June is 117,000.Beginningcostofconversionis24,000. Total conversion cost added during June is $62,400.

Question

Filo · Accepted Answer

Step 1. 
To determine: The equivalent units of transferred in costs, direct material, and conversion costs for June 2014.

Given information:
Beginning: Degree of completion: transferred in costs 100%, direct material 0%; conversion costs; 50%.
Ending: Degree of completion: transferred in costs 100%, direct material 0%; conversion costs; 75%.
Total cost added during June is 27,000.Beginningtransferredincostis60,000.
Total transferred in cost added during June is 117,000.Beginningcostofconversionis24,000.
Total conversion cost added during June is $62,400.

Step 2.
Explanation:
Weighted Average Method:
Weighted average method is the method in which per unit cost is calculated by dividing the total cost by the number of units produced. It is associated with process costing.

Statement that shows the calculation of equivalent unit:

| Particulars | Physical units | Equivalent units |
|-------------|---------------|-----------------|
|             |               | Transferred in costs | Direct material | Conversion cost |
| Work in process, beginning | 60 |   |   |   |
| Start... | | | | |

Step 3.
To determine: The cost assigned to equivalent units of transferred in costs, direct material, and conversion costs.

Step 4.
To determine: The cost assigned to units completed and units in ending work in process.

Question Text	The equivalent units of transferred in costs, direct material and conversion costs for June 2014. Given information: Beginning: Degree of completion: transferred in costs 100%, direct material 0%; conversion costs; 50%. Ending: Degree of completion: transferred in costs 100%, direct material 0%; conversion costs; 75%. Total cost added during June is $27, 000. B e g innin g t r an s f erre d in cos t i s$ 60,000. Total transferred in cost added during June is $117, 000. B e g innin g cos t o f co n v ers i o ni s$ 24,000. Total conversion cost added during June is $62,400.
Topic	All Topics
Subject	Accounting
Class	Grade 10
Answer Type	Text solution:1

Text solutionVerified

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