Question

Award: 6.66 points Scribners Corporation produces fine papers in three production departments --Puiping, Drying and Finishing in the Pulping Department raw materials such as wood fiber and reg cotton are mechanically and chemically treated to separate their bers. The result is a thick sury of bers. In the Drying Department the wet fibers transferred from the Puiping Department are laid down on porous webs pressed to remove excess Iquid, and dried in ovens. In the Finishing Department the dried paper is coated, out, and spooled onto reels The company uses the weighted average method in its process costing system. Data for March for the Drying Department follow Us 3.200 8000 Percent Completed Puiping Conversion 1001 100% $ 1.584 Work in process inventory, March 1 Work in process inventory, March 31 Puiping cost in work in process inventory, March 1 Conversion cost in work in process inventory, March 1 Units transferred to the next production department Puiping cost added during March Conversion cost added during March 1.024 152.000 81 616 55 56 No materials are added in the Drying Department. Puiping cost represents the costs of the wet fibers transferred in from the Puiping 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 Compute the Drying Department's equivalent units of production for pulping and conversion in March. Pulping Conversion Equivalent units of production < Required 1 Required 2 > References Worksheet Learning Objective 04-02 Compute the equivalent units of production using the weighted average method Learning Objective: 04-04 Assign costs to units using the weighted average method Difficulty: 1 Easy Learning Objective: 04-03 Compute the cost per equivalent unit using the weghted average method Learning Objective 04-05 Prepare a cost reconciliation report using the weighted average method

Answer 1

Production report using weight Average Method Physical units Units to be accounted for :- Beginning work in process, march 1 Started into Production Total Units Accounted for 3200 (Given) 156800 160000 1. Equivalent units for Material and Conversion cost Equivalent Unit Conversion cost Physical units Pulping Units to be accounted for:- Units Completed & transferred out Ending work in Process, march 31 Total Equivalent Units 152000 8000 160000 152000 8000 160000 152000 (Given) 6000 (8000 x 75%) 158000 Units Started in production = Ending WIP + Completed and transferred out - Beginning WIP = 8000 + 152000 - 3200 = 156800 2. Cost Per Equivalent Unit Pulping Conversion Total cost $ Cost To be accounted For:- Beginning work in process Cost added during month Total Cost 1,584 81,616 83,200 $ $ $ 1,024 55,856 56,880 $ $ $ 2,608 (Given) 137,472 (Given) 140,080 (A) $ (B) Equivalent Units Cost per equivalent unit 160000 0.52 158000 0.36 (A)/(B) $ $ $ 0.88 3. cost of Ending work in Process Ending work in process :- Material Conversion cost Total Cost of Ending Work in Process 4,160 2,160 (8000 units x $ 0.52) (6000 units x $ 0.36) $ 6,320 4.Cost of Units Transferred out Units Completed & Transferred out:- Material Conversion cost Total Cost of units completed & Transferred out 79,040 54,720 (152000 units x $0.52) (152000 units x $ 0.36) $ $ 133,760 5.Cost Reconcilliation report Total Cost 2,608 137,472 140,080 Cost accounted for :- Cost of beginning work in process cost added to production during the period Total cost to be accounted for Cost accounted for :- Cost of Units Completed & Transferred out Cost of Ending work in process Total cost to be accounted for 133,760 6,320 140,080