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 ((8,480 units, 20% complete with respect to Department T costs) Transferred-in costs (from Department S) Department T conversion costs Current work (19,300 units started) Prior department costs Department T costs 38, 390 7,480 94,578 145,928 The ending Inventory has 3,400 units, which are 50 percent complete with respect to Department T costs and 100 percent complete for prior department costs. Required: a. Complete the production cost report using the weighted-average method. (Round "Cost per equivalent unit" to 2 decimal places.) Physical Units Equivalent Units Prior Department Department Flow of units: Units to be accounted for Beginning WIP inventory Units started this period Total units to account for Units accounted for: Completed and transferred out Units in ending inventory Prior department Department T Total units accounted for Total Department Prior Department Flow of costs: Costs to be accounted for: Costs in beginning WIP inventory Current period costs Total costs to be accounted for Cost per equivalent unit Prior department Department Costs accounted for: Costs assigned to units transferred out Costs of ending WIP inventory Total costs accounted for

Answer 1

Solution:

	Physical Units	Equivalent Units
		Prior Department	Department T
Flow of Units:
Units to be accounted for:
Beginning WIP Inventory	8400
Units started this period	19300
Total Units to be accounted for	27700
Units Accounted for:
Completed and transferred out	24300	24300	24300
Units in ending inventory	3400
Prior department		3400
Department T			1700
Total Units accounted for	27700	27700	26000

	Total	Prior Department	Department T
Flow of costs:
Cost to be accounted for:
Cost in Beginning WIP Inventory	$45,870	$38,390	$7,480
Current Period costs	$2,40,490	$94,570	$1,45,920
Total Cost to be accounted for	$2,86,360	$1,32,960	$1,53,400
Cost per Equivalent
Prior Department		$4.80
Department T			$5.90
Costs Accounted for:
Cost assigned to units transferred out (respective Equivalent units*Cost per Equivalent unit)	$2,60,010	$1,16,640	$1,43,370
Cost of ending WIP inventory (respective units*Cost)	$26,350	$16,320	$10,030
Total Costs accounted for	$2,86,360	$1,32,960	$1,53,400