BE 17-1 Job order versus process costing

Which of the following industries would tipically use job order costing, and which would tipically use process costing?

Steel manufactuirng Computer chip manufacturing

Business consulting Candy making

Web designer Designer clothes manufacturing

BE 17-2 Units to be assigned costs

Oak Ridge Steel Company has two departments, Casting and Rolling. In the Rolling Department, ingots from the Casting Department are rolled into steel sheet. The Rolling Department received 2,400 tons from the Casting Department. During July, the Rolling Department completed 2,200 tons, including 300 tons of work in process on July 1. The ending work in process inventory on July 31 was 500 tons. How many tons were started and completed during July?

BE 17-3 Equivalent units of materials costs

The Rolling Department of Oak Ridge Steel Company had 300 tons in beginning work in pro-cess inventory (25% complete) on July 1. During July, 2,200 tons were completed. The ending work in process inventory on July 31 was 500 tons (40% complete). What are the total equiva-lent units for direct materials for July if materials are added at the beginning of the process?

BE 17-4 Equivalent units of conversion costs

The Rolling Department of Oak Ridge Steel Company had 300 tons in beginning work in process inventory (25% complete) on July 1. During July, 2,200 tons were completed. The ending work in process inventory on July 31 was 500 tons (40% complete). What are the total equivalent units for conversion costs?

BE 17-5 Cost per equivalent unit

The cost of direct materials transferred into the Rolling Department of Oak Ridge Steel Com-pany is $432,000. The conversion cost for the period in the Rolling Department is $144,150. The total equivalent units for direct materials and conversion are 2,400 tons and 2,325 tons, respectively. Determine the direct materials and conversion costs per equivalent unit.