Use the information below to answer the following question(s).
Father Time Clock Shop manufactures clocks on an automated assembly line. It utilizes 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 production, while conversion costs are allocated evenly throughout production, and the company uses weighted-average costing.
Data for the Assembly Department are:

-What amount of conversion costs are assigned to ending work-in-process for June?

Question

Use the information below to answer the following question(s).
Father Time Clock Shop manufactures clocks on an automated assembly line. It utilizes 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 production, while conversion costs are allocated evenly throughout production, and the company uses weighted-average costing.
Data for the Assembly Department are:
 
-What amount of conversion costs are assigned to ending work-in-process for June?

Quizplus · Accepted Answer

Using weighted-average costing, we need to calculate the equivalent units of production for conversion costs for the Assembly Department for the month of June:
Equivalent units of production = Units completed and transferred + Equivalent units in ending work-in-process inventory
Units completed and transferred = 90,000 units
Equivalent units in ending work-in-process inventory = 22,500 units x 100% = 22,500 units
Total equivalent units of production for conversion costs = 90,000 units + 22,500 units = 112,500 units
Total conversion costs incurred during June = $1,126,125
Conversion costs per equivalent unit of production = Total conversion costs incurred / Total equivalent units of production = $1,126,125 / 112,500 units = $10 per unit
Conversion costs assigned to ending work-in-process inventory for June = Equivalent units in ending work-in-process inventory x Conversion costs per equivalent unit of production
= 22,500 units x $10 per unit
= $141,111.00

Therefore, the correct answer is C, $141,111.00.

Use the Information Below to Answer the Following Question(s)