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:

Costs for June 2017:

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. )
A)$108,000
B)$77,389
C)$108,076
D)$55,779

Question

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:

Costs for June 2017:

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. )
A)$108,000 
B)$77,389 
C)$108,076 
D)$55,779

Quizplus · Accepted Answer

11ea8a5a_a08f_7fcd_a19c_b90f2f5435f7_TB5540_00_TB5540_00_TB5540_00 Direct material cost per equivalent unit = [($602,500 + $94,000)/ 1350] = $540.
Equivalent units in ending inventory = 200 units
Direct materials cost to be assigned to ending Work-in-Process account = $540 × 200 = $108,000