BE 17-6 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 Oak Ridge Steel Company are $180 and $62, respectively. The equivalent units to be assigned costs are as follows:

Equivalent Units

Direct Materials Conversion

Inventory in process, July 1 0 225

Started and completed during July 1,900 1,900

Transferred out of Rolling (completed) 1,900 2,125

Inventory in process, July 31 500 200

Total units to be assigned costs 2,400 2,325

The beginning work in process inventory on July 1 had a cost of $80,000. Determine the cost of completed and transferred-out production, the ending work in process inventory, and the total costs assigned by the Rolling Department.

BE 17-7 Process cost journal entries

In July, the cost of materials transferred into the Rolling Department from the Casting Department of Oak Ridge Steel Company is $432,000. The conversion cost for the period in the Rolling Department is $144,150 ($54,700 factory overhead applied and $89,450 direct labor). The total cost transferred to Finished Goods for the period was $553,750. The Rolling Department had a beginning inventory of $80,000.

A. Journalize (1) the cost of transferred-in materials, (2) the conversion costs, and (3) the costs transferred out to Finished Goods.

B. Determine the balance of Work in ProcessRolling at the end of the period.

BE 17-8 Analyzing changes in unit costs

The costs of materials consumed in producing good units in the Forming Department of Thomas Company were $76,000 and $77,350 for September and October, respectively. The number of equivalent units produced in September and October was 800 tons and 850 tons, respectively. Evaluate the change in the cost of materials between the two months