The costs per equivalent unit of direct materials and conversion in the Rolling Department of Jabari Steel Company are $375 and $60, respectively. The equivalent units to be assigned costs are as follows: Inventory in process, October 1 Started and completed during October Transferred out of Rolling (completed) Inventory in process, October 31 Total units to be assigned costs Details Equivalent Units Direct Materials 0 14,800 14,800 1,200 16,000 Conversion 320 14,800 15,120 300 15,420 This table has two main columns. The first is untitled and contains the inventory components. The second is Equivalent Units. Under Equivalent Units are two sub-heads, Direct Materials and Conversion. For Direct Materials, the items are: Inventory in process, October 1, 0; Started and completed during October, 14,800 (single ruled); Transferred out of Rolling (completed), 14,800; Inventory in process, October 31, 1,200 (single ruled); Total units to be assigned costs, 16,000 (double ruled). For Conversion, the items are: Inventory in process, October 1, 320; Started and completed during October, 14,800 (single ruled); Transferred out of Rolling (completed), 15,120; Inventory in process, October 31, 300 (single ruled); Total units to be assigned costs, 15,420 (double ruled). The beginning work in process inventory on October 1 had a cost of $318,560. Determine the cost of completed and transferred-out production, the ending work in process inventory, and the total costs assigned by the Rolling Department.
The costs per equivalent unit of direct materials and conversion in the Rolling Department of Jabari Steel Company are $375 and $60, respectively. The equivalent units to be assigned costs are as follows: Inventory in process, October 1 Started and completed during October Transferred out of Rolling (completed) Inventory in process, October 31 Total units to be assigned costs Details Equivalent Units Direct Materials 0 14,800 14,800 1,200 16,000 Conversion 320 14,800 15,120 300 15,420 This table has two main columns. The first is untitled and contains the inventory components. The second is Equivalent Units. Under Equivalent Units are two sub-heads, Direct Materials and Conversion. For Direct Materials, the items are: Inventory in process, October 1, 0; Started and completed during October, 14,800 (single ruled); Transferred out of Rolling (completed), 14,800; Inventory in process, October 31, 1,200 (single ruled); Total units to be assigned costs, 16,000 (double ruled). For Conversion, the items are: Inventory in process, October 1, 320; Started and completed during October, 14,800 (single ruled); Transferred out of Rolling (completed), 15,120; Inventory in process, October 31, 300 (single ruled); Total units to be assigned costs, 15,420 (double ruled). The beginning work in process inventory on October 1 had a cost of $318,560. Determine the cost of completed and transferred-out production, the ending work in process inventory, and the total costs assigned by the Rolling Department.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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:The costs per equivalent unit of direct materials and conversion in the Rolling
Department of Jabari Steel Company are $375 and $60, respectively. The equivalent
units to be assigned costs are as follows:
Inventory in process, October 1
Started and completed during October
Transferred out of Rolling (completed)
Inventory in process, October 31
Total units to be assigned costs
Details
Equivalent Units
Direct Materials
0
14,800
14,800
1,200
16,000
Conversion
320
14,800
15,120
300
15,420
This table has two main columns. The first is untitled and contains the inventory
components. The second is Equivalent Units. Under Equivalent Units are two
sub-heads, Direct Materials and Conversion. For Direct Materials, the items are:
Inventory in process, October 1, 0; Started and completed during October, 14,800
(single ruled); Transferred out of Rolling (completed), 14,800; Inventory in
process, October 31, 1,200 (single ruled); Total units to be assigned costs, 16,000
(double ruled). For Conversion, the items are: Inventory in process, October 1,
320; Started and completed during October, 14,800 (single ruled); Transferred
out of Rolling (completed), 15,120; Inventory in process, October 31, 300 (single
ruled); Total units to be assigned costs, 15,420 (double ruled).
The beginning work in process inventory on October 1 had a cost of $318,560.
Determine the cost of completed and transferred-out production, the ending work in
process inventory, and the total costs assigned by the Rolling Department.
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