Work in ProcessForming
Beginning inventory, October 1	26,482
Direct materials	169,798
Conversion costs	162,400
Ending inventory	?

The Forming Department had 10,350 partially complete units in beginning work in process inventory. The department started work on 76,250 units during the month and ended the month with 8,600 units still in work in process. These unfinished units were? 60% complete as to direct materials but? 20% complete as to conversion work. The beginning balance 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 procedure to determine how much cost to? transfer.)

We need to begin the? five-step process costing procedure by first summarizing the units to account for and computing the equivalent 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 and transferred out and the ending work in process. ?(Enter quantities? first, then the cost per equivalent unit amounts in the same order as calculated in the preceding step. Round your answers to 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