Question

Scribners Corporation produces fine papers in three production departments -Pulping, Drying, and Finishing. In the Pulping Department, raw materials such as wood fiber and rag cotton are mechanically and chemically treated to separate their fibers. The result is a thick slurry of fibers. In the Drying Department, the wet fibers transferred from the Pulping Department are laid down on porous webs, pressed to remove excess liquid, and dried in ovens. In the Finishing Department, the dried paper is coated, cut, and spooled onto reels. The company uses the weighted-average method in its process costing system. Data for March for the Drying Department follow: Units 3, 300 4,500 Work in process inventory, March 1 Work in process inventory, March 31 Pulping cost in work in process inventory, March 1 Conversion cost in work in process inventory, March 1 Units transferred to the next production department Pulping cont added during March Conversion cost added during March Percent Completed Pulping Conversion NOOB 808 1008 801 $ 1,815 $ 1.254 163.900 $ 95,857 $ 69,096 No materials are added in the Drying Department. Pulping cost represents the costs of the wet fibers transferred in from the Pulping Department. Wet fiber is processed in the Drying Department in batches; each unit in the above table is a batch and one batch of wet fibers produces a set amount of dried paper that is passed on to the Finishing Department. Required: 1. Compute the Drying Department's equivalent units of production for pulping and conversion in March 2. Compute the Drying Department's cost per equivalent unit for pulping and conversion in March 3. Compute the Drying Department's cost of ending work in process inventory for pulping, conversion, and in total for March 4. Compute the Drying Department's cost of units transferred out to the Finishing Department for pulping, conversion, and in total in March 5. Prepare a cost reconciliation report for the Drying Department for March Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5

Answer 1

1) Equivalent unit

	Pulping	Conversion
Unit transferred out	163900	163900
Ending WIP	4500	4500*80% = 3600
Equivalent unit	168400	167500

2) Cost per equivalent unit

	Pulping	Conversion
Beginning WIP	1815	1254
Cost added	95857	69096
Total Cost	97672	70350
Equivalent unit	168400	167500
Cost per equivalent unit	0.58	0.42

3) Cost of ending WIP

	Pulping	Conversion	Total
Cost of ending WIP	4500*.58 = 2610	3600*.42 = 1512	4122

4) Cost of unit transferred out

	Pulping	Conversion	Total
Cost of Unit transferred out	163900*.58 = 95062	68838	163900

5) Cost reconciliation

Cost to be accounted for
Beginning WIP	3069
Cost added	164953
Total cost to be accounted for	168022
Cost accounted for
Cost of unit transferred out	163900
Ending WIP	4122
Total cost accounted for	168022