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 $0.50 and $2.10, respectively. The equivalent units to be assigned costs are as follows: Inventory in process, July 1 Started and completed during July Transferred out of Rolling (completed) Inventory in process, July 31 Total units to be assigned costs Equivalent Units Feedback Direct Materials 0 50,000 50,000 3,000 53,000 Conversion 4,000 50,000 54,000 1,200 55,200 The beginning work in process inventory on July 1 had a cost of $2,800. Determine the cost of completed and transferred-out production, the ending work in process inventory, and the total costs assigned by the Rolling Department. Completed and transferred-out production Inventory in process, ending 189,720 X 10,000 X 199,720 X Total costs assigned by the Rolling Department Check My Work The assumption would be that units that had been in beginning work in process would have been the first units completed in the department. How much cost is associated with those beginning work in process units? How many units were both started and completed during the period? How much cost is associated with the started and completed units? How many units were started in the period but are still in work in process? How much cost is associated with these ending work in process units?
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 $0.50 and $2.10, respectively. The equivalent units to be assigned costs are as follows: Inventory in process, July 1 Started and completed during July Transferred out of Rolling (completed) Inventory in process, July 31 Total units to be assigned costs Equivalent Units Feedback Direct Materials 0 50,000 50,000 3,000 53,000 Conversion 4,000 50,000 54,000 1,200 55,200 The beginning work in process inventory on July 1 had a cost of $2,800. Determine the cost of completed and transferred-out production, the ending work in process inventory, and the total costs assigned by the Rolling Department. Completed and transferred-out production Inventory in process, ending 189,720 X 10,000 X 199,720 X Total costs assigned by the Rolling Department Check My Work The assumption would be that units that had been in beginning work in process would have been the first units completed in the department. How much cost is associated with those beginning work in process units? How many units were both started and completed during the period? How much cost is associated with the started and completed units? How many units were started in the period but are still in work in process? How much cost is associated with these ending work in process units?
Chapter1: Financial Statements And Business Decisions
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Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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Transcribed Image Text: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 $0.50 and $2.10,
respectively. The equivalent units to be assigned costs are as follows:
Equivalent Units
Feedback
Direct Materials
0
Inventory in process, July 1
Started and completed during July
Transferred out of Rolling (completed)
Inventory in process, July 31
Total units to be assigned costs
The beginning work in process inventory on July 1 had a cost of $2,800. Determine the cost of completed and transferred-out production, the ending
work in process inventory, and the total costs assigned by the Rolling Department.
Completed and transferred-out production
$189,720 X
Inventory in process, ending
10,000 X
Total costs assigned by the Rolling Department
$ 199,720 X
Conversion
50,000
50,000
3,000
53,000
4,000
50,000
54,000
1,200
55,200
▼ Check My Work
The assumption would be that units that had been in beginning work in process would have been the first units completed in the department.
How much cost is associated with those beginning work in process units? How many units were both started and completed during the period?
How much cost is associated with the started and completed units? How many units were started in the period but are still in work in process?
How much cost is associated with these ending work in process units?
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