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:

	Percent Completed
	Units	Pulping			Conversion
Work in process inventory, March 1	3,100	100	%		80	%
Work in process inventory, March 31	7,200	100	%		75	%
Pulping cost in work in process inventory, March 1				$	1,054
Conversion cost in work in process inventory, March 1				$	496
Units transferred to the next production department					138,100
Pulping cost added during March				$	51,254
Conversion cost added during March				$	28,204

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. figure the Drying Department's equivalent units of production for pulping and conversion in March.

2. figure the Drying Department's cost per equivalent unit for pulping and conversion in March.

3. figure the Drying Department's cost of ending work in process inventory for pulping, conversion, and in total for March.

4. figure 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.

figure the Drying Department's equivalent units of production for pulping and conversion in March.

	Pulping Conversion Equivalent units of production

figure the Drying Department's cost per equivalent unit for pulping and conversion in March. (Round your answers to 2 decimal places.)

	Pulping Conversion Cost per equivalent unit

figure the Drying Department's cost of ending work in process inventory for pulping, conversion, and in total for March. (Round your intermediate calculations to 2 decimal places.)

	Pulping Conversion Total Cost of ending work in process inventory

figure the Drying Department's cost of units transferred out to the Finishing Department for pulping, conversion, and in total in March. (Round your intermediate calculations to 2 decimal places.)

	Pulping Conversion Total Cost of units completed and transferred out

figure a cost reconciliation report for the Drying Department for March. (Round your intermediate calculations to 2 decimal places.)

	Drying Department Cost Reconciliation Costs to be accounted for:    Total cost to be accounted for Costs accounted for as follows: Total cost accounted for

Answer 1

1) Equivalent unit

	Pulping	Conversion
Unit completed out	138100	138100
Ending work in process	7200	7200*75% = 5400
Equivalent unit	145300	143500

2) Cost per equivalent unit

	Pulping	Conversion
Beginning WIP	1054	496
cost added	51254	28204
Total Cost	52308	28700
Equivalent unit	145300	143500
Cost per equivalent unit	0.36	0.20

3) Cost of ending work in process

	Pulping	Conversion	Total
Cost of ending WIP	2592	1080	3672

4) Cost of unit transferred out

	Pulping	Conversion	Total
Cost of unit transferred out	49716	27620	77336

figure a cost reconciliation report for the Drying Department for March. (Round your intermediate calculations to 2 decimal places.)

	Drying Department Cost Reconciliation Costs to be accounted for: Beginning WIP 1550 Cost added 79458 Total cost to be accounted for 81008 Costs accounted for as follows: Cost of unit transferred out 77336 Cost of ending WIP 3672 Total cost accounted for 81008