The costs per equivalent unit of direct materials and conversion in the Rolling Department of Jabari Steel Company are $1.20 and $2.75, respectively. The equivalent units to be assigned costs are as follows: Equivalent Units Direct Materials Equivalent Units Conversion Inventory in process, October 1 0 3,100 Started and completed during October 44,000 44,000 Transferred out of Rolling (completed) 44,000 47,100 Inventory in process, October 31 3,000 1,800 Total units to be assigned costs 47,000 48,900 The beginning work in process inventory on October 1 had a cost of $1,740. Determine the cost of completed and transferred-out production, the ending work in process inventory, and the total costs assigned by the Rolling Department. Line Item Description Amount Completed and transferred-out production $fill in the blank 1 Inventory in process, October 31 $fill in the blank 2 Total costs assigned by the Rolling Department $fill in the blank 3
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.
The costs per equivalent unit of direct materials and conversion in the Rolling Department of Jabari Steel Company are $1.20 and $2.75, respectively. The equivalent units to be assigned costs are as follows:
| Equivalent Units Direct Materials |
Equivalent Units Conversion |
|
|---|---|---|
| Inventory in process, October 1 | 0 | 3,100 |
| Started and completed during October | 44,000 | 44,000 |
| Transferred out of Rolling (completed) | 44,000 | 47,100 |
| Inventory in process, October 31 | 3,000 | 1,800 |
| Total units to be assigned costs | 47,000 | 48,900 |
The beginning work in process inventory on October 1 had a cost of $1,740. Determine the cost of completed and transferred-out production, the ending work in process inventory, and the total costs assigned by the Rolling Department.
| Line Item Description | Amount |
|---|---|
| Completed and transferred-out production | $fill in the blank 1 |
| Inventory in process, October 31 | $fill in the blank 2 |
| Total costs assigned by the Rolling Department | $fill in the blank 3 |
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