In the case of tomlinson corporation note that the

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In the case of Tomlinson Corporation, note that the direct material cost per equivalent unitwent from $7.07 in the prior period ($61,500 ÷ 8,700 units) to $8.74 in July, while theconversion cost per equivalent unit decreased from $19.86 ($43,200 ÷ 2,175 equivalent units inopening work-in-process) to $13.24 in July. Under the weighted-average method, these costs andequivalent units are combined into consistent, blended rates of $8.40 and $13.60 for directmaterials and conversion costs, respectively.17-26 (35–40 min.) Transferred-in costs, weighted-average method.Trendy Clothing, Inc., is a manufacturer of winter clothes. It has a knitting department and afinishing department. This exercise focuses on the finishing department. Direct materials areadded at the end of the process. Conversion costs are added evenly during the process. Trendyuses the weighted-average method of process costing. The following information for June 2014is available.Required:1.Calculate equivalent units of transferred-in costs, direct materials, and conversion costs.2.Summarize the total costs to account for, and calculate the cost per equivalent unit fortransferred-in costs, direct materials, and conversion costs.3.Assign costs to units completed (and transferred out) and to units in ending work in process.SOLUTION1, 2. & 3. Solution Exhibit 17-26A calculates the equivalent units of work done to date. SolutionExhibit 17-26B summarizes total costs to account for, calculates the cost per equivalent unit ofwork done to date for transferred-in costs, direct materials, and conversion costs, and assignsthese costs to units completed and transferred out and to units in ending work-in-processinventory.17-5
SOLUTION EXHIBIT 17-26ASummarize the Flow of Physical Units and Compute Output in Equivalent Units; Weighted-Average Method of Process Costing, Finishing Department of Trendy Clothing for June 2014.(Step 1)(Step 2)
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SOLUTION EXHIBIT 17-26BSummarize the Total Costs to Account for, Compute the Cost per Equivalent Unit, and Assign Costs to the Units Completed and Units in Ending Work-in-Process Inventory; Weighted-Average Method of Process Costing, Finishing Department ofTrendy Clothing for June 2014.TotalProductionCostsTransferred-inCostsDirectMateria(Step 3)Work in process, beginning (given)$84,000 $ 60,000 Costs added in current period (given)206,400117,00027,000Total costs to account for$290,400 $ 177,000$27,0(Step 4)Costs incurred to date$ 117,000$27,000Divide by equivalent units of work done to date (Solution Exhibit 17-26A)÷ 160÷ 12Cost per equivalent unit of work done to date$1,106.25 $ 225(Step 5)Assignment of costs:Completed and transferred out (120 units)$228,870 (120a$1,106.25) + (120aWork in process, ending (40 units):61,530(40b$1,105.25)+ (0b$22Total costs accounted for$290,400 $ 177,000+ $27,0a
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