Cost of Units Transferred Out and Ending Work in Process The costs per equivalen
ID: 2555730 • 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 $0.50 and $0.50, respectively. The equivalent units to be assigned costs are as follows:
Equivalent Units
Direct Materials Conversion
Inventory in process, July 1 0 4,600
Started and completed during July 57,000 57,000
Transferred out of Rolling (completed) 57,000 61,600
Inventory in process, July 31 5,000 1,500
Total units to be assigned costs 62,000 63,100
The beginning work in process inventory on July 1 had a cost of $3,220. 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, ending $
Total costs assigned by the Rolling Department $
Explanation / Answer
Completed and transferred-out production 62520 =3220+(4600*0.5)+57000*(0.5+0.5) Inventory in process, ending 3250 =(5000*0.5)+(1500*0.5) Total costs assigned by the Rolling Department 65770