Use the following information for questions 1 through6.
Best Linens manufactures towels and other linens. Material isintroduced at the beginning of the process in the CuttingDepartment. Conversion costs are incurred (and allocated) uniformlythroughout the process. As the cutting of material is completed,the pieces are immediately transferred to the Sewing Department.Data for the Cutting Department for the month of March 2019follow:
Work-in-process, February 28—50,000 units
100 percent complete for direct materials; 40 percent completedfor conversion costs actual costs of direct materials, $70,500;actual costs of conversion, $34,050
Units started during March, 225,000
Units completed during March 200,000
Work-in-process, March31 75,000 units
100 percent complete for direct materials; 20 percent completedfor conversion costs
Direct materials added during March [actual costs]$342,000
Conversion costs added during March [actualcosts] $352,950
- Assuming Best Linens uses the weighted-average method toaccount for inventories, what are the equivalent units of work forthe month of March for Direct Materials and Conversion Costs?
- Assuming Best Linens used the weighted-average method toaccount for inventories, what is the cost per equivalent whole unitproduced during March?
- Assuming Best Linens uses the weighted-average method toaccount for inventories, what is the assignment of costs towork-in-process at the end of March?
- If Best Linens uses the First-in, First-out (FIFO) method toaccount for inventories, what are the equivalent units of work forthe month of March for Direct Materials and Conversion Costs?
- If Best Linens uses the First-in, First-out (FIFO) method toaccount for inventories, what is the cost per equivalent unit forMarch for both Direct Materials and Conversion Costs?
- Assuming Best Linens uses the First-in, First-out (FIFO) methodto account for inventories, what is the assignment of costs tounits completed and transferred to the Sewing Department duringMarch?
- In the Sewing Department, additional direct materials are addedto the product at the end of production. Without prejudice to youranswer for questions 1 through 9, assume that 200,000 units weretransferred from the Cutting Department and that theweighted-average method is used. Data for February follow:
Work-in-process, February 28—70,000units (30 percent complete as to conversion)
Units completed during March—240,000units
Work-in-process, March 31—30,000 units(80 percent complete as to conversion)
For the Sewing Department, what arethe equivalent units of work done in March for Transferred In,Direct Materials, and Conversion Costs?
Apply the following information to your data fromquestion #7:
- Standard costs for the Cutting Department—Direct materials:$1.50 per unit; Conversion costs $1.75 per unit, what is thestandard cost of units transferred from the Cutting Departmentduring March?
- Using the information from question 8 regarding standard costs,what is the conversion costs variance for the month of March?
- Provide the journal entry to record inventory costs anddirect-material variances for the month of March.
