Question

Cost of Units Transferred Out and Ending Work in Process The costs per equivalent unit of direct materials and conversion in the Rolling Department of Kraus Steel Company are $0.85 and $2.20, respectively. The equivalent units to be assigned costs are as follows: Equivalent Units Direct Materials Conversion Inventory in process, October 1 3,400 Started and completed during October 67,000 67,000 Transferred out of Rolling completed) 67,000 70,400 Inventory in process, October 31 7,000 4,200 Total units to be assigned costs 74,000 74,600 The beginning work in process inventory on October 1 had a cost of $1,940. Determine the cost of completed and transferred-out production, the ending work in process inventory, and the total costs assigned by the Rolling Department. Completed and transferred-out production Inventory in process, October 31 Total costs assigned by the Rolling Department

Answer 1

Completed and transferred out production	213770
Inventory in process, October 31	15190
Total costs assigned by the Rolling Department	228960
Workings:
	Direct materials	Conversion	Total
Units Transferred out of Rolling	67000	70400
X Cost per equivalent unit	0.85	2.20
Costs Transferred out of Rolling	56950	154880	211830
Beginning work in process inventory	1940
Costs Transferred out of Rolling	211830
Completed and transferred out production	213770
	Direct materials	Conversion	Total
Inventory in process, October 31 units	7000	4200
X Cost per equivalent unit	0.85	2.20
Inventory in process, October 31	5950	9240	15190