Question
Cost per Equivalent Unit The cost of direct materials transferred into the Rolling Department of Kraus Company is $451,200. The conversion cost for the period
Cost per Equivalent Unit
The cost of direct materials transferred into the Rolling Department of Kraus Company is $451,200. The conversion cost for the period in the Rolling Department is $289,750. The total equivalent units for direct materials and conversion are 2,400 tons and 4,750 tons, respectively.
Determine the direct materials and conversion costs per equivalent unit.
Direct materials cost per equivalent unit: | $ per ton |
Conversion 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 Kraus Steel Company are $0.85 and $2.95, respectively. The equivalent units to be assigned costs are as follows:
Equivalent Units | ||||
Direct Materials | Conversion | |||
Inventory in process, October 1 | 0 | 5,000 | ||
Started and completed during October | 63,000 | 63,000 | ||
Transferred out of Rolling (completed) | 63,000 | 68,000 | ||
Inventory in process, October 31 | 5,000 | 1,500 | ||
Total units to be assigned costs | 68,000 | 69,500 |
The beginning work in process inventory on October 1 had a cost of $3,000. Determine the cost of completed and transferred-out production, the ending work in process inventory, and the total costs assigned by the Rolling Department.
Completed and transferred-out production | $ |
Inventory in process, October 31 | $ |
Total costs assigned by the Rolling Department | $ |
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