Question

# 1. The costs per equivalent unit of direct materials and conversion in the Rolling Department of...

1.

The costs per equivalent unit of direct materials and conversion in the Rolling Department of Kraus Steel Company are \$1.65 and \$0.25, respectively. The equivalent units to be assigned costs are as follows:

 Equivalent Units Direct Materials Conversion Inventory in process, October 1 0 3,100 Started and completed during October 52,000 52,000 Transferred out of Rolling (completed) 52,000 55,100 Inventory in process, October 31 3,000 1,200 Total units to be assigned costs 55,000 56,300

The beginning work in process inventory on October 1 had a cost of \$2,080. 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, October 31 Total costs assigned by the Rolling Department

2.

In October, the cost of materials transferred into the Rolling Department from the Casting Department of Kraus Steel Company is \$505,000. The conversion cost for the period in the Rolling Department is \$103,600 (\$60,600 factory overhead applied and \$43,000 direct labor). The total cost transferred to Finished Goods for the period was \$500,000. The Rolling Department had a beginning inventory of \$25,700.

a1. Journalize the cost of transferred-in materials. If an amount box does not require an entry, leave it blank.

 Work in Process-Rolling Work in Process-Casting

a2. Journalize the conversion costs. If an amount box does not require an entry, leave it blank.

 Work in Process-Rolling Factory Overhead-Rolling Wages Payable

a3. Journalize the costs transferred out to Finished Goods. If an amount box does not require an entry, leave it blank.

 Finished Goods Work in Process-Rolling

b. Determine the balance of Work in Process—Rolling at the end of the period.
_______________

1) Completed and transferred out = (52000*1.65+55100*.25)+2080 = 101655

Cost of ending work in process = (3000*1.65+1200*.25) = 5250

Total cost assigned by rolling Department = 101655+5250 = 106905

2) Journal entry

a1. Journalize the cost of transferred-in materials. If an amount box does not require an entry, leave it blank.

 Work in Process-Rolling 505000 Work in Process-Casting 505000

a2. Journalize the conversion costs. If an amount box does not require an entry, leave it blank.

 Work in Process-Rolling 103600 Factory Overhead-Rolling 60600 Wages Payable 43000

a3. Journalize the costs transferred out to Finished Goods. If an amount box does not require an entry, leave it blank.

 Finished Goods 500000 Work in process-Rolling 500000

b. Determine the balance of Work in Process—Rolling at the end of the period.
634300-500000 = 134300

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