Question

0 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 $0.35 and $2.20, respectively. The equivalent units to be assigned costs are as follows: Equivalent Units Direct Materials Conversion Inventory in process, October 1 2,800 Started and completed during October 46,000 46,000 Transferred out of Rolling (completed) 46,000 48,800 Inventory in process, October 31 3,000 1,800 Total units to be assigned costs 49,000 50,600 The beginning work in process inventory on October 1 had a cost of $1,880. 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

TOTAL COST ACCOUNTED FOR:
Units completed from Beg. Wip
				Equivalent unit	Cost per EU	Total Cost
Cost of beginning WIP				1880
Material				0	0.35	0
Conversion Cost			2,800	2.2	6160
Total cost to complete beginning WIP			8040
Units started and completed
				Equivalent unit	Cost per EU	Total Cost
Material				46,000	0.35	16100
Conversion Cost			46,000	2.2	101200
Total cost of units started and complted			117300
Total cost of units transferred out	(8040+117300)	125340
Ending Work in process
				Equivalent unit	Cost per EU	Total Cost
Material				3,000	0.35	1050
Conversison Cost			1,800	2.2	3960
Total cost of Ending Work in process:			5,010
Final Answer:
Cost of completed and transferred out production	1,25,340
Inventory in process Oct31			5,010
Total cost assigned by Rolling department		1,30,350