Question

Cost per Equivalent Unit The cost of direct materials transferred into the Rolling Department of Kraus...

Cost per Equivalent Unit

The cost of direct materials transferred into the Rolling Department of Kraus Company is $451,200. The conversion cost for the period in the Rolling Department is $289,750. The total equivalent units for direct materials and conversion are 2,400 tons and 4,750 tons, respectively.

Determine the direct materials and conversion costs per equivalent unit.

Direct materials cost per equivalent unit: $ per ton
Conversion cost per equivalent unit:

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 Kraus Steel Company are $0.85 and $2.95, respectively. The equivalent units to be assigned costs are as follows:

Equivalent Units
Direct Materials Conversion
Inventory in process, October 1 0 5,000
Started and completed during October 63,000 63,000
Transferred out of Rolling (completed) 63,000 68,000
Inventory in process, October 31 5,000 1,500
Total units to be assigned costs 68,000 69,500

The beginning work in process inventory on October 1 had a cost of $3,000. 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 $

Homework Answers

Answer #1
1
Direct materials cost per equivalent unit 188 =451200/2400
Conversion cost per equivalent unit 61 =289750/4750
2
Completed and transferred-out production 257150
Inventory in process, October 31 8675
Total costs assigned by the Rolling Department 265825
Workings:
Direct materials Conversion Total
Beginning work in process inventory 3000
To complete Inventory in process, October 1 0 14750 14750 =5000*2.95
Cost of units Started and completed 53550 185850 239400
Completed and transferred-out production 257150
Direct materials Conversion Total
Inventory in process, October 31 5000 1500
X Costs per equivalent unit 0.85 2.95
Inventory in process, October 31 4250 4425 8675
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