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 $1.60, respectively. The equivalent units to be assigned costs are as follows:

	Equivalent Units
	Direct Materials		Conversion
Inventory in process, July 1	0		1,800
Started and completed during July	46,000		46,000
Transferred out of Rolling (completed)	46,000		47,800
Inventory in process, July 31	4,000		2,000
Total units to be assigned costs	50,000		49,800

The beginning work in process inventory on July 1 had a cost of $1,150. 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	$

Answer 1

Completed and transferred-out production	$ 176,530
Inventory in process, ending	$ 11,800
Total costs assigned by the Rolling Department	$ 188,330

Working

Cost report [Including Reconciliation]
	Cost of	Units Transferred		47,800.00	units
		Equivalent Units [Step 2]	Cost per Equivalent Units [Step 3]	Cost of Units Transferred	TOTAL
A	From Beginning WIP:
	Material	-	$ 2.15	$ 0
	Conversion	1,800	$ 1.60	$ 2,880	$ 2,880
B	From units started & completed
	Material	46,000	$ 2.15	$ 98,900
	Conversion	46,000	$ 1.60	$ 73,600	$ 172,500
C=A+B	Total				$ 175,380
D	Cost of Beginning WIP				$ 1,150
E=C+D	Total Cost of Units transferred				$           176,530.00
	Cost of	Ending WIP		4,000.00	units
		Equivalent Units [Step 2]	Cost per Equivalent Units [Step 3]	Cost of Ending WIP	TOTAL
F	Material	4,000	$ 2.15	$ 8,600
G	Conversion	2,000	$ 1.60	$ 3,200
H = F + G	Total Cost of Ending WIP				$ 11,800
I = E + H	Total Cost accounted for				$ 188,330