Work in Process—Forming
Beginninginventory, October 1	26,482
Directmaterials	169,798
Conversioncosts	162,400
Endinginventory	?

The Forming Departmenthad 10,350 partially complete units in beginning work in processinventory. The department started work on 76,250 units during themonth and ended the month with 8,600 units still in work inprocess. These unfinished units were? 60% complete as to directmaterials but? 20% complete as to conversion work. The beginningbalance of $26,482 consisted of $21,470 of direct materials and$5,012 of conversion costs.

Requirement

Journalize the transfer of costs to the Finishing Department.?(Hint?: Complete the? five-step process costing procedureto determine how much cost to? transfer.)

We need to begin the? five-step process costing procedure byfirst summarizing the units to account for and computing theequivalent units.

Smithson Roping
Forming Department
Physical Flow of Units and Equivalent Units
	Flow of	Equivalent Units
	Physical	Direct	Conversion
Flow of Production	Units	Materials	Costs
Units to account for:
Units accounted for:
Total equivalent units

The next step is calculating the cost per equivalent unit.?(Round the cost per equivalent unit to the nearest?cen

Smithson Roping
Forming Department
Cost per Equivalent Unit
	Direct	Conversion
	Materials	Costs	Total
Cost per equivalent unit

Now we can calculate the total cost of the units completed andtransferred out and the ending work in process. ?(Enterquantities? first, then the cost per equivalent unit amounts in thesame order as calculated in the preceding step. Round your answersto the nearest whole? dollar.)

Smithson Roping
Forming Department
Assignment of Costs
	Assign costs:	Direct Materials			Conversion Costs				Total
			x (		+		)
			x
							x
	Total cost accounted for