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 conversion costs is assigned to the ending Work-in-Process account for June? (Round any intermediary calculations to the nearest cent. )
A)$81,588.24
B)$46,709.60
C)$289.71
D)$404,000.00

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 conversion costs is assigned to the ending Work-in-Process account for June? (Round any intermediary calculations to the nearest cent. )
A)$81,588.24 
B)$46,709.60 
C)$289.71 
D)$404,000.00

Quizplus · Accepted Answer

11ea8a5a_a08f_f501_a19c_0fa64dd31a74_TB5540_00_TB5540_00_TB5540_00 Conversion cost per equivalent unit = $543,000 / 1302.0 = $417.05
Equivalent units in ending inventory = 160 × 70% = 112.0 equivalent units
Conversion cost to be assigned to ending Work-in-Process account = 112.0 × $417.05 = $46,709.60