1. Job order versus process costing
2. Which of the following industries would typically use job order costing, and which would typically use process costing?

• Clothing factories
• Accounting consulting firms
• Food companies
• Shampoo manufacturer
• Aircraft manufacturing company
• Sports drink manufacturer

1. Units to be assigned costs

• Fortress 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 1,200 tons from the Casting Department. During July, the Rolling Department completed 1,100 tons, including 150 tons of work in process on July 1.The ending work in process inventory on July 31 was 250 tons. How many tons were started and completed during July?

1. Equivalent units of materials cost

• The Rolling Department of Fortress Steel Company had 150 tons in beginning work in process inventory (25% complete) on July 1. During July, 550 tons were completed. The ending work in process inventory on July 31 was 250 tons (40% complete). What are the total equivalent units for direct materials for July if materials are added at the beginning of the process?

1. Equivalent units of conversion cost

• The Rolling Department of Fortress Ridge Steel Company had 150 tons in beginning work in process inventory (25% complete) on July 1. During July, 1,100 tons were completed. The ending work in process inventory on July 31 was 250 tons (40% complete). What are the total equivalent units for conversion costs?

Cost per equivalent unit

• The cost of direct materials transferred into the Rolling Department of Oak Ridge Steel Company is $432,000. The conversion cost for the period in the Rolling Department is $144,150. The total equivalent units for direct materials and conversion are 2,400 tons and 2,325 tons, respectively. Determine the direct materials and conversion costs per equivalent unit.