After completing Steps? 1-4 of the process costing? procedure, Drumm ?Corp., arr
ID: 2437627 • Letter: A
Question
After completing Steps? 1-4 of the process costing? procedure, Drumm ?Corp., arrived at the following equivalent units and costs per equivalent unit for its final production department for the month of October?:
Requirement 1a. How much cost should be assigned to the units completed and transferred out to finished goods inventory during October question mark October?
Determine the costs that should be assigned to the units completed and transferred out to finished goods inventory. Enter the number of units completed and transferred out in the first answer? box, then enter the applicable cost? amounts, and finally calculate the total cost. ?(Enter quantities? first, then the cost? amounts.)
??
Drumm Corp.
Assignment of Costs
Transferred-in
Direct
Conversion
Assign costs:
Costs
Materials
Costs
Total
a.
x (
+
+
)
Requirement 1b. How much cost should be assigned to the partially complete units still in ending work in process inventory at the end of October question mark October?
Now determine the costs that should be assigned to the units still in ending work in process inventory. For each category of? costs, enter the number of units in ending work in process inventory in the first answer? box, then enter the applicable cost? amount, and finally calculate the total cost.
??
Drumm Corp.
Assignment of Costs
Transferred-in
Direct
Conversion
Assign costs:
Costs
Materials
Costs
Total
Units
Cost
Units
Cost
Units
Cost
b.
x
x
x
Requirement 2. What was the Total Cost Accounted For during October? What other important figure must this? match? What does this figure tell? you?
Calculate the total costs accounted? for: $ ?
The Total Costs Accounted For figure must match the ? ?
Total Costs to Account For Total Ending Work in Process Inventory figure.In other? words, the company must assign ??
Requirement 2. What was the Total Cost Accounted For during October ?
What other important figure must this? match? What does this figure tell? you?
Calculate the total costs accounted? for: ?$ ?
The Total Costs Accounted For figure must match the ?? figure.??
In other? words, the company must assign ??of the costs that were in the work in process account during the period to either
?1)
2)
Requirement 3. What is Drumm?'s average cost of making each unit of its product from the first production department all the way through the final production? department? ?(Round your answer to the nearest? cent.)
Drumm ?Corp.'s cost of making each unit is $.......?
Explanation / Answer
Req 1-a: Costs of completed and transferred out units Transferred in Directt Conversion Total Cost Material Cost Units completed and transferred out 302400 10800 144000 457200 Req 1-b: Cost of Ending WIP Transferred in Directt Conversion Total Cost Material Cost Ending inventory-13500 units Transferred in cost (13500*4.20) 56700 Material (9000*0.15) 1350 Conversion (7500*2.00) 15000 73050 Req 2L Total cost accounted for: Cost of Completed and transferred out units: 457200 Cost of Ending inventory: 73050 Total cost accounted for: 530250 Total cost accounted for must match the figure of Cost to be accounted for (i.e. cost of beginning WIP and transferred n cost and other current cost incurred). Req3: Average cost of producing the per unit product: Transferred in cost per unit 4.2 Material per unit 0.15 Conversion cost per unit: 2 Total cost per unit 6.35
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