# Equivalent Units of Materials Cost: The Rolling Department

Equivalent Units of Materials Cost:

The Rolling Department of Kraus Steel Company had 3,600 tons in beginning work in process inventory (80% complete) on October 1. During October, 60,700 tons were completed. The ending work in process inventory on October 31 was 3,000 tons (70% complete).

What are the total equivalent units for direct materials for October if materials are added at the beginning of the process?

Equivalent Units of Conversion Costs:

The Rolling Department of Kraus Steel Company had 5,120 tons in beginning work in process inventory (60% complete) on October 1. During October, 51,200 tons were completed. The ending work in process inventory on October 31 was 3,584 tons (80% complete).

What are the total equivalent units for conversion costs?

Cost per Equivalent Unit:

The cost of direct materials transferred into the Rolling Department of Kraus Company is \$565,600. The conversion cost for the period in the Rolling Department is \$310,400. The total equivalent units for direct materials and conversion are 2,800 tons and 4,850 tons, respectively.

Determine the direct materials and conversion costs per equivalent unit. Direct materials cost per equivalent unit