Cost per Equivalent Unit

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 Keystone Steel Company are $60 and $10, respectively. The equivalent units to be assigned costs are as follows:

	Equivalent Units
	Direct Materials		Conversion
Inventory in process, beginning of period	0		320
Started and completed during the period	7,500		7,500
Transferred out of Rolling (completed)	7,500		7,820
Inventory in process, end of period	1,000		300
Total units to be assigned costs	8,500		8,120

The beginning work in process inventory had a cost of $25,000. Determine the cost of completed and transferred-out production and the ending work in process inventory.

Completed and transferred-out production	$
Inventory in process, ending	$

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The cost of direct materials transferred into the Rolling Department of Keystone Steel Company is $510,000. The conversion cost for the period in the Rolling Department is $81,200. The total equivalent units for direct materials and conversion are 8,500 tons and 8,120 tons, respectively.

Determine the direct materials and conversion costs per equivalent unit.

Direct materials cost per equivalent unit:	$ per ton
Conversion costs per equivalent unit:	$ per ton

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Equivalent Units of Conversion Costs

The Rolling Department of Keystone Steel Company had 400 tons in beginning work in process inventory (20% complete). During the period, 7,900 tons were completed. The ending work in process inventory was 1,000 tons (30% complete).

What are the total equivalent units for conversion costs? units

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Equivalent Units of Materials Cost

The Rolling Department of Keystone Steel Company had 400 tons in beginning work in process inventory (20% complete). During the period, 7,900 tons were completed. The ending work in process inventory was 1,000 tons (30% complete).

What are the total equivalent units for direct materials if materials are added at the beginning of the process? units

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Units to be Assigned Costs

Keystone 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 8,500 tons from the Casting Department. During the period, the Rolling Department completed 7,900 tons, including 400 tons of work in process at the beginning of the period. The ending work in process inventory was 1,000 tons.

How many tons were started and completed during the period? tons