After completing Steps? 1-4 of the process costing? procedure,Drumm ?Corp., arrived at the following...

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Accounting

After completing Steps? 1-4 of the process costing? procedure,Drumm ?Corp., arrived at the following equivalent units and costsper equivalent unit for its final production department for themonth of October?:
Requirement 1a. How much cost should be assigned to the unitscompleted and transferred out to finished goods inventory duringOctober question mark October?
Determine the costs that should be assigned to the unitscompleted and transferred out to finished goods inventory. Enterthe number of units completed and transferred out in the firstanswer? box, then enter the applicable cost? amounts, and finallycalculate 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 thepartially complete units still in ending work in process inventoryat the end of October question mark October?
Now determine the costs that should be assigned to the unitsstill in ending work in process inventory. For each category of?costs, enter the number of units in ending work in processinventory 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 duringOctober? What other important figure must this? match? What doesthis 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 ProcessInventory figure.In other? words, the company must assign ??
Requirement 2. What was the Total CostAccounted For during October ?
What other important figure must this? match? What does thisfigure 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 thatwere in the work in process account during the period to either
?1)
2)
Requirement 3. What is Drumm?'s average cost ofmaking each unit of its product from the first productiondepartment all the way through the final production? department??(Round your answer to the nearest? cent.)
Drumm ?Corp.'s cost of making each unit is $.......?
Equivalent Units
Transferred- Direct Conversion
In Materials Costs
Unitscompleted and transferred out 72,000 72,000 72,000
Units inending work in process, October 31 13,500 9,000 7,500
Totalequivalent units 85,500 81,000 79,500
Cost perequivalent unit $4.20 $0.15 $2.00

Answer & Explanation Solved by verified expert

4.3 Ratings (698 Votes)

Req 1a Costs of completed and transferred out units Transferred in Directt Conversion Total Cost Material Cost Units completed and transferred out 302400 10800 144000 See Answer

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In: AccountingAfter completing Steps? 1-4 of the process costing? procedure,Drumm ?Corp., arrived at the following equivalent...After completing Steps? 1-4 of the process costing? procedure,Drumm ?Corp., arrived at the following equivalent units and costsper equivalent unit for its final production department for themonth of October?:Requirement 1a. How much cost should be assigned to the unitscompleted and transferred out to finished goods inventory duringOctober question mark October?Determine the costs that should be assigned to the unitscompleted and transferred out to finished goods inventory. Enterthe number of units completed and transferred out in the firstanswer? box, then enter the applicable cost? amounts, and finallycalculate the total cost. ?(Enter quantities? first, then the cost?amounts.)??Drumm Corp.Assignment of CostsTransferred-inDirectConversionAssign costs:CostsMaterialsCostsTotala.x (++)Requirement 1b. How much cost should be assigned to thepartially complete units still in ending work in process inventoryat the end of October question mark October?Now determine the costs that should be assigned to the unitsstill in ending work in process inventory. For each category of?costs, enter the number of units in ending work in processinventory in the first answer? box, then enter the applicable cost?amount, and finally calculate the total cost.??Drumm Corp.Assignment of CostsTransferred-inDirectConversionAssign costs:CostsMaterialsCostsTotalUnitsCostUnitsCostUnitsCostb.xxxRequirement 2. What was the Total Cost Accounted For duringOctober? What other important figure must this? match? What doesthis 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 ProcessInventory figure.In other? words, the company must assign ??Requirement 2. What was the Total CostAccounted For during October ?What other important figure must this? match? What does thisfigure 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 thatwere in the work in process account during the period to either?1)2)Requirement 3. What is Drumm?'s average cost ofmaking each unit of its product from the first productiondepartment all the way through the final production? department??(Round your answer to the nearest? cent.)Drumm ?Corp.'s cost of making each unit is $.......?Equivalent UnitsTransferred-DirectConversionInMaterialsCostsUnitscompleted and transferred out72,00072,00072,000Units inending work in process, October 3113,5009,0007,500Totalequivalent units85,50081,00079,500Cost perequivalent unit$4.20$0.15$2.00

	Equivalent Units
	Transferred-	Direct	Conversion
	In	Materials	Costs
Unitscompleted and transferred out	72,000	72,000	72,000
Units inending work in process, October 31	13,500	9,000	7,500
Totalequivalent units	85,500	81,000	79,500
Cost perequivalent unit	$4.20	$0.15	$2.00