Question

Lansing, Inc. provides the following information for one of its department's operations for June (no new material is added in Department T). $ WIP inventory-Department T Beginning inventory (8,500 units, 30% complete with respect to Department I costs) Transferred-in costs (from Department 5) Department T conversion costs Current work (19,500 units started) Prior department costs Department T costs 39,700 15,190 97,500 168,350 The ending inventory has 3,500 units, which are 60 percent complete with respect to Department T costs and 100 percent complete for prior department costs. Required: Complete the production cost report using FIFO. (Round "Cost per equivalent unit" to 2 decimal places.) Equivalent Units

Answer 1

Answer

	Physical Units	Prior Department	Department T
Flow of Units:
Units to be accounted for:
Beginning WIP inventory	8,500
Units started this period	19,500
Total Units to account for	28,000
Units accounted for:
Completed & Transferred out
From Beginning WIP Inventory	8,500
Prior Department		-
Department T			5,950
Started & Completed currently	16,000	16,000	16,000
Units in Ending WIP Inventory	3,500
Prior Department		3,500
Department T			2,100
Total units accounted for	28,000	19,500	24,050

	TOTAL	Prior Department	Department T
Flow of Costs:
Cost of be accounted for:
Costs in beginning WIP Inventory	$                       54,890.00	$                   39,700.00	$          15,190.00
Current Period Costs	$                     265,850.00	$                   97,500.00	$       168,350.00
Total Cost to be accounted for	$                     320,740.00	$                 137,200.00	$       183,540.00
Cost per Equivalent units
Prior Department		$                              5.00
Department T			$                    7.00
Costs accounted for:
Costs assigned to units transferred out:
Costs from beginning WIP Inventory	$                       54,890.00	$                   39,700.00	$          15,190.00
Current Costs added to complete beginning WIP Inventory	$                       41,650.00
Prior Department		$                                   -
Department T			$          41,650.00
Current Costs of units started and completed:	$                     192,000.00
Prior Department		$                   80,000.00
Department T			$       112,000.00
Total cost transferred out	$                     288,540.00	$                 119,700.00	$       168,840.00
Cost of ending WIP Inventory	$                       32,200.00
Prior Department		$                   17,500.00
Department T			$          14,700.00
Total costs accounted for	$                     320,740.00	$                 137,200.00	$       183,540.00