Question

1. The Rolling Department of Kraus Steel Company had 2,442 tons in beginning work in process inventory (20% complete) on October 1. During October, 40,700 tons were completed. The ending work in process inventory on October 31 was 3,663 tons (20% complete).

What are the total equivalent units for conversion costs? Round to the nearest whole unit.
______units

2.

The cost of direct materials transferred into the Rolling Department of Kraus Company is $518,400. The conversion cost for the period in the Rolling Department is $283,200. The total equivalent units for direct materials and conversion are 2,700 tons and 4,800 tons, respectively.

Determine the direct materials and conversion costs per equivalent unit.

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

Answer 1

Answer- 1)- The total equivalent units for conversion costs are = 40945 units.

Explanation- Total equivalent units for conversion costs= (2442 units*80%)+ {(40700 units-2442 units)*100%)+ (3663 units*20%)

= 1954 units+ 38258 units+ 733 units

= 40945 units

Answer-2)- Direct materials cost per equivalent unit = Cost of direct materials/Total equivalent units for direct materials

= $518400/2700 tons

= $192 per ton

Conversion costs cost per equivalent unit = Total conversion costs/Total equivalent units for conversion costs

= $283200/4800 tons

= $59 per ton