Cost of Units Transferred Out and Ending Work in Process The costs per equivalen
ID: 2336035 • Letter: C
Question
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 Oak Ridge Steel Company are $1.70 and $2.65, respectively. The equivalent units to be assigned costs are as follows:
The beginning work in process inventory on July 1 had a cost of $2,310. Determine the cost of completed and transferred-out production, the ending work in process inventory, and the total costs assigned by the Rolling Department.
Equivalent Units Direct Materials Conversion Inventory in process, July 1 0 3,500 Started and completed during July 44,000 44,000 Transferred out of Rolling (completed) 44,000 47,500 Inventory in process, July 31 5,000 2,000 Total units to be assigned costs 49,000 49,500Explanation / Answer
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 (44000*1.7+47500*2.65+2310) $202985 Inventory in process, ending (5000*1.7+2000*2.65) $13800 Total costs assigned by the Rolling Department $216785