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Cost of units transferred out and ending work in process
The costs per equivalent unit of direct materials and conversion in the Rolling Depart- ment of Keystone Steel Company are $60 and $10, respectively. The equivalent units to be assigned costs are as follows:
equivalent Units
Direct Materials Conversion
Inventory in process, beginning of period
0
320
Started and completed during the period
7,500
Transferred out of Rolling (completed)
7,820
Inventory in process, end of period
1,000
300
Total units to be assigned costs
8,500
8,120
The beginning work in process inventory had a cost of $25,000. Determine the cost of completed and transferred-out production and the ending work in process inventory.
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