Costs per equivalent unit: Total costs for October in Rolling Department $ 511,500 $ 267,344 Total equivalent units 31,000 30,380 Cost per equivalent unit (b) $ 16.5 $ 8.8 Costs charged to production: Inventory in process, October 1 $ 66,352 Costs incurred in October 778,844 Total costs accounted for by the Rolling Department $ 845,196 Cost allocated to completed and partially completed units: Inventory in process, October 1 balance (c) $ 66,352 To complete inventory in process, October 1 (c) $ 0 $ 5,104 5,104 Cost of completed October 1 work in process $ 71,456 Started and completed in October (c) 255,200 733,700 Transferred to finished goods in October (c) $ 805,156 Inventory in process, October 31 (d) 33,000 7,040 40,040 Total costs assigned by the Rolling Department $ 845,196 3. The cost per equivalent unit for direct materials increased from August to October. The cost per equivalent unit for conversion costs increased from August to October. These changes should be investigated for their underlying causes, and any necessary corrective actions should be taken. Feedback Costs accumulate in each department before being transferred to finished goods. There are three types of inventory; materials, work in process, and finished goods. Calculate equivalent units for materials and conversion costs. Calculate the cost per equivalent unit for materials and conversion costs. Calculate the costs assigned to the beginning inventory, the units started and completed, and the ending inventory. Compare the costs per equivalent unit for August through October. The costs per equivalent units for materials and conversion for August are in the September 1 work in process inventory.