Solution:
Direct Conversion Total
Materials Costs Costs Costs
Inventory in process, balance 163,800
Inventory in process, 0 + 80 * $120 9,600
beginning of period.
Cost of completed 28,200
beginning work in process
Started and completed 3,700* $750 + 3,700*$120 3,219,000
during the period..
Transferred out of Rolling (completed) 3,247,200 Inventory in process, 300 * $750 + 75 * $120 234,000
end of period.
Total costs assigned by the Rolling Dept. . 787,200 Completed and
transferred-out production $ 3,247,200
Inventory in process, ending $ 787,200