Equivalent Units of Conversion Costs The Rolling Department of Kraus Steel Company had 3,808 tons in beginning work in process inventory (30% complete) on October 1. During October, 47,600 tons were completed. The ending work in process inventory on October 31 was 2,856 tons (40% complete) What are the total equivalent units for conversion costs? Round to the nearest whole unit. units Cost per Equivalent Unit The cost of direct materials transferred into the Rolling Department of Kraus Company is $400,000. The conversion cost for the period in the Rolling Department is $275,500. The total equivalent units for direct materials and conversion are 2,500 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; per ton 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 $2.50 and $2.05, respectively. The equivalent units to be assigned costs are as follows: Equivalent Units Direct Materials Conversion Inventory in process, October 1 0 3,800 Started and completed during October 63,000 63,000 Transferred out of Rolling (completed) 63,000 66,800 Inventory in process, October 31 5,000 2,000 Total units to be assigned costs 68,000 68,800 The beginning work in process inventory on October 1 had a cost of $2,240. 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 Process Cost Journal Entries In October, the cost of materials transferred into the Rolling Department from the Casting Department of Kraus Steel Company $515,600. The conversion cost for the period in the Rolling Department is $114,300 ($65,600 factory overhead applied and $48,700 direct labor). The total cost transferred to Finished Goods for the period was $530,000. The Rolling Department had a beginning inventory of $25,000 a1. Journalize the cost of transferred-in materials. If an amount box does not require an entry, leave it blank. Work in Process-Rolling Work in Process-Casting Feedback Check My World Remember there are three classifications of inventory, Raw Materials, Work in Process, and Finished Goods Costs accumulate and are transferred from one department to the next. a 2. Journalize the conversion costs. If an amount box does not require an entry, leave it blank. Work in Process Rolling Factory Overhead-Rolling Wages Payable a3. Journalize the costs transferred out to Finished Goods. If an amount box does not require an entry, leave it blank. Finished Goods Work in Process-Rolling Feedback Check My Work Now that the units are completed how will that affect the asset accounts of the business? Remember there are three types of Inventory, Raw Materials, Work in Process, and Finished Goods b. Determine the balance of Work in Process - Rolling at the end of the period. Equivalent Units of Production The Converting Department of Worley Company had 1,040 units in work in process at the beginning of the period, which were 75% complete. During the period, 21,600 units were completed and transferred to the Packing Department. There were 1,160 units in process at the end of the period, which were 60% complete. Direct materials are placed into the process at the beginning of production Determine the number of equivalent units of production with respect to direct materials and conversion costs. If an amount is zero, enter in "O" Worley Company Number of Equivalent Units of Production Whole Units Direct Materials Conversion Equivalent Units Equivalent Units 0 1,040 20,560 20,560 20,560 Inventory in process, beginning Started and completed Transferred to Packing Department Inventory in process, ending 21.600 20,560 1,160 1,160 Total 22,760 21,720 Equivalent Units of Production The following Information concerns production in the Baking Department for December. All direct materials are placed in process at the beginning of production ACCOUNT Work in Process-Baking Department ACCOUNT NO. Balance Date Item Debit Credit Debit Credit Dec 1 Bal., 8,100 units, 2/5 completed 18,468 31 Direct materials, 145,800 units 277,020 295,488 31 Direct labor 75,850 371,338 31 Factory overhead 42,662 414,000 31 Goods finished, 147,600 units 399,006 14,994 31 Bal., 2 units, 3/5 completed 14.994 a. Determine the number of units in work in process inventory at December 31. units b. Determine the equivalent units of production for direct materials and conversion costs in December. If an amount is zero, enter in "0" Baking Department Equivalent Units of Production for Direct Materials and conversion Costs For December Whole Units Equivalent Units Equivalent Direct Materials Units Conversion Inventory in process, December 1 Started and completed in December Transferred to finished goods in December Inventory in process, December 31 Total Instructions Radford Inc, manufactures a sugar product by a continuous process, involving three production departments-Refining, Siting, and Packing, Assume that records indicate that direct materials, direct labor, and applied factory overhead for the first department, Refining, were $369,000 $146,000, and $97,600, respectively. Also, work in process in the Refining Department at the beginning of the period totaled $30.200, and work in process at the end of the period totaled $28,400 Required: a (1) On September 30, journalize the entry to record the flow of costs into the Rofining Department during the period for direct materials, (2) On September 30. journalize the entry to record the Mow of costs into the Refining Department during the period for direct labor (3) On September 30, Journalize the entry to record the flow of costs into the Refining Department during the period for factory overhead Instructions The cost accountant for River Rock Beverage Co. estimated that total factory overhead cost for the Blending Department for the coming fiscal year beginning February 1 would be $130,000, and total direct labor costs would be $100,000. During February, the actual direct labor cost totuled 512,000, and factory overhead cost incurred totaled $15,950. Required: a What is the predetermined factory overhead rate based on direct labor cost? b. Journalize the entry to apply factory overhead to production for February 28. Refer to the chart of accounts for the exact wording or the accountitlesCNOW Journals do not use lines for spaces or journal explanations. Every line on a journal page is used for debitor credit entries. Do not add explanations or skip a line between journal entries. CNOW Journals will automatically inderita Credit entry when a credit amount is entered C. What is the February 28 balance of the account Factory Overhead Blending Department? d. Does the balance in part (c) represent over or underapplied factory overhead? a