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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
Toronto Titanium Corporation manufactures a highly specialized titanium sheathing material that is used extensively in the aircraft industry. The following data have been compiled for the month of June. Conversion activity occurs uniformly throughout the production process.
Work in process, June 1—40,000 units:
Direct material: 100% complete, cost of ...............................................................................................       $110,500
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2. Equivalent units: conversion: 207,500 |
Conversion: 38% complete, cost of ...................................................................................................... Balance in work in process, June 1 ............................................................................................... |
  22,375 $132,875 |
|
3. Cost per equivalent unit, |
Units started during June ........................................................................................................................ |
190,000 |
|
direct material: $2.35 |
Units completed during June and transferred out to finished-goods inventory ............................................. |
180,000 |
|
 |
Work in process, June 30: |
 |
Direct material: 100% complete Conversion: 55% complete
Costs incurred during June:
Direct material ....................................................................................................................................  $430,000
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Conversion costs:
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|
Direct labor  .................................................................................................................................... |
$128,000 |
|
Applied manufacturing overhead ..................................................................................................... |
192,000 |
|
Total conversion costs ..................................................................................................................... |
$320,000 |
Required:Â Â Â Â Â Â Â Â Prepare schedules to accomplish each of the following process-costing steps for the month of June. Use the weighted-average method of process costing.
1.     Analysis of physical flow of units.
2.     Calculation of equivalent units.
3.     Computation of unit costs.
4.     Analysis of total costs.
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