Assign total costs in a second processing department (Learning Objective 4)

After completing Steps 1-4 of the process costing procedure, Dale Corp. arrived at the following equivalent units and costs per equivalent unit for its final production department for the month of February:

Requirements 1. How much cost should be assigned to the:

a. units completed and transferred out to Finished Goods Inventory during February?

b. partially complete units still in ending work in process inventory at the end of February?
2. What was the “Total cost accounted for” during February? What other important figure must this match? What does this figure tell you?
3. What is Dale Corp.’s average cost of making each unit of its product from the first production department all the way through the final production department?

Equivalent Units Transferred- Direct Conversion in Materials Costs Units completed and transferred out 70,000 70,000 70,000 Units in ending work in process, February 28 Total equivalent units Cost per equivalent unit 10,000 8,000 4,000 80,000 78,000 74,000 $2.64 $0.15 $1.26