What amount of direct materials costs is assigned to the ending Work-in-Process account for June

ACCOUNTING

Multiple Choice

The Swiss Clock Shop manufactures clocks on a highly automated assembly line. Its costing system 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 the production process. Conversion costs are allocated evenly throughout production. Swiss Clock Shop uses weighted-average costing.


Data for the Assembly Department for June 20x3 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)


Costs for June 20x3:

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


What amount of direct materials costs is assigned to the ending Work-in-Process account for June?

a. $168,571.50

b. $283,552.50

c. $259,530

d. $236,850

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