Cost of Units Transferred Out and Ending Work in Process The costs per equivalen
ID: 2415106 • 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 Keystone Steel Company are $60 and $10, respectively. The equivalent units to be assigned costs are as follows:
The beginning work in process inventory had a cost of $25,000. Determine the cost of completed and transferred-out production and the ending work in process inventory.
Equivalent Units Direct Materials Conversion Inventory in process, beginning of period 0 320 Started and completed during the period 7,500 7,500 Transferred out of Rolling (completed) 7,500 7,820 Inventory in process, end of period 1,000 300 Total units to be assigned costs 8,500 8,120Explanation / Answer
Statement showing computations Particulars Materials Conversion Total Transferred out of Rolling (completed) 7,500.00 7,820.00 Cost per Equivalent Unit 60.00 10.00 Cost of Units Transferred out of Rolling (completed) 450,000.00 78,200.00 528,200.00 Opening WIP costs 25,000.00 Total Cost of Units Transferred out of Rolling (completed) 553,200.00 Inventory in process, ending 1,000.00 300.00 Cost per Equivalent Unit 60.00 10.00 Costof Inventory in process, ending 60,000.00 3,000.00 63,000.00