Question

After completing Steps? 1-4 of the process costing? procedure, Drumm ?Corp., arrived at the following equivalent units and costs per equivalent unit for its final production department for the month of October?:

Requirement 1a. How much cost should be assigned to the units completed and transferred out to finished goods inventory during October question mark October?

Determine the costs that should be assigned to the units completed and transferred out to finished goods inventory. Enter the number of units completed and transferred out in the first answer? box, then enter the applicable cost? amounts, and finally calculate the total cost. ?(Enter quantities? first, then the cost? amounts.)

??

Drumm Corp.

Assignment of Costs

Transferred-in

Direct

Conversion

Assign costs:

Costs

Materials

Costs

Total

a.

x (

+

+

)

Requirement 1b. How much cost should be assigned to the partially complete units still in ending work in process inventory at the end of October question mark October?

Now determine the costs that should be assigned to the units still in ending work in process inventory. For each category of? costs, enter the number of units in ending work in process inventory in the first answer? box, then enter the applicable cost? amount, and finally calculate the total cost.

??

Drumm Corp.

Assignment of Costs

Transferred-in

Direct

Conversion

Assign costs:

Costs

Materials

Costs

Total

Units

Cost

Units

Cost

Units

Cost

b.

x

x

x

Requirement 2. What was the Total Cost Accounted For during October? What other important figure must this? match? What does this figure tell? you?

Calculate the total costs accounted? for: $ ?

The Total Costs Accounted For figure must match the ? ?

Total Costs to Account For Total Ending Work in Process Inventory figure.In other? words, the company must assign ??

Requirement 2. What was the Total Cost Accounted For during October ?

What other important figure must this? match? What does this figure tell? you?

Calculate the total costs accounted? for: ?$ ?

The Total Costs Accounted For figure must match the    ?? figure.??

In other? words, the company must assign ??of the costs that were in the work in process account during the period to either

?1)

2)

Requirement 3. What is Drumm?'s average cost of making each unit of its product from the first production department all the way through the final production? department? ?(Round your answer to the nearest? cent.)

Drumm ?Corp.'s cost of making each unit is $.......?

	Equivalent Units
	Transferred-	Direct	Conversion
	In	Materials	Costs
Units completed and transferred out	72,000	72,000	72,000
Units in ending work in process, October 31	13,500	9,000	7,500
Total equivalent units	85,500	81,000	79,500
Cost per equivalent unit	$4.20	$0.15	$2.00

Answer 1

Req 1-a:
Costs of completed and transferred out units
			Transferred in	Directt	Conversion	Total
			Cost	Material	Cost
Units completed and transferred out			302400	10800	144000	457200
Req 1-b:
Cost of Ending WIP
			Transferred in	Directt	Conversion	Total
			Cost	Material	Cost
Ending inventory-13500 units
Transferred in cost (13500*4.20)			56700
Material (9000*0.15)				1350
Conversion (7500*2.00)					15000	73050
Req 2L
Total cost accounted for:
Cost of Completed and transferred out units:					457200
Cost of Ending inventory:					73050
Total cost accounted for:					530250
Total cost accounted for must match the figure of Cost to be accounted for (i.e. cost of beginning WIP and transferred n cost and other current cost incurred).
Req3:
Average cost of producing the per unit product:
Transferred in cost per unit			4.2
Material per unit			0.15
Conversion cost per unit:			2
Total cost per unit			6.35