Question

The costs per equivalent unit of direct materials and conversion in the Rolling Department of Kraus Steel Company are $750 and $120, respectively. The equivalent units to be assigned costs are as follows:Equivalent UnitsDirect Materials ConversionInventory in process, October 1 0 80Started and completed during October 3,700 3,700Transferred out of Rolling (completed) 3,700 3,780Inventory in process, October 31 300 75Total units to be assigned costs 4,000 3,855The beginning work in process inventory on October 1 had a cost of $163,800. Determine the cost of completed and transferred-out production, the ending work in process inventory, and the total costs assigned by the Rolling Department.

Answer 1

Answer:

A. $3,228,600

B. $234,000

C. $3,462,600

Explanation:

A. Calculation to Determine the cost of completed and transferred-out production

Completed and transferred-out production= [ (3700*750) + (3780*120) ]

Completed and transferred-out production=$3,228,600

B. Calculation to Determine the ending work in process inventory,

Ending Inventory in process, October 31 ,=[ (300*750) + (75*120) ]

Ending Inventory in process, October 31=$234,000

C. Calculation to determine total costs assigned by the Rolling Department

Total costs assigned by the Rolling Department=$3,228,600+$234,000

Total costs assigned by the Rolling Department=$3,462,600

Therefore the cost of completed and transferred-out production, the ending work in process inventory, and the total costs assigned

are:

A. $3,228,600

B. $234,000

C. $3,462,600