Reference no: EM132596203
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:
Work in process, beginning inventory 250 units
Direct materials (100% complete)
Conversion costs (50% complete)
Units started during June 800 units
Work in process, ending inventory 150 units
Direct materials (100% complete)
Conversion costs (75% complete)
Work in process, beginning inventory
Direct materials $180,000
Conversion costs $270,000
Direct materials costs added during June $1,000,000
Conversion costs added during June $1,000,000
Question a) What are the equivalent units for direct materials and conversion costs at Father Time Clock Shop, respectively?
Question b) What is the total amount debited to the work-in-process account during the month of June at Father Time Clock Shop?
Question c) What is the direct materials cost per equivalent unit during June at Father Time Clock Shop?
Question d) What is the conversion cost per equivalent unit in June at Father Time Clock Shop?
Question e) What amount of conversion costs are assigned to ending work-in-process for June at Father Time Clock Shop?