Cost of Units Transferred Out and Ending Work in Process The costs per equivalen
ID: 2553689 • 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 $2.15 and $0.75, respectively. The equivalent units to be assigned costs are as follows:
The beginning work in process inventory on July 1 had a cost of $1,910. 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 3,300 Started and completed during July 65,000 65,000 Transferred out of Rolling (completed) 65,000 68,300 Inventory in process, July 31 5,000 2,000 Total units to be assigned costs 70,000 70,300Explanation / Answer
Answer
Direct Materials
Conversion
Transferred out of Rolling (completed) – A
65,000 units
68,300 units
Cost per Equivalent units – B
$2.15
$0.75
Cost assigned = A x B
$139,750
$51,225
Inventory in process, July 31 - A
5,000 units
2,000 units
Cost per Equivalent units – B
$2.15
$0.75
Cost assigned = A x B
$10,750
$1,500
Working
Amount
Completed and transferred out production
[139750 + 51225]
$190,975
Inventory in Process, ending
[10750 + 1500]
$12,250
Total Cost assigned by the Rolling Department
$203,225
Direct Materials
Conversion
Transferred out of Rolling (completed) – A
65,000 units
68,300 units
Cost per Equivalent units – B
$2.15
$0.75
Cost assigned = A x B
$139,750
$51,225
Inventory in process, July 31 - A
5,000 units
2,000 units
Cost per Equivalent units – B
$2.15
$0.75
Cost assigned = A x B
$10,750
$1,500