Question

6.

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 ((9,000 units, 25% complete with respect to Department T costs)
Transferred-in costs (from Department S)	$	46,550
Department T conversion costs		15,700
Current work (20,500 units started)
Prior department costs		112,750
Department T costs		207,050

The ending inventory has 4,000 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.)

Answer 1

The produclion cost report using the Weighted avertage method | Physical 'unite equivalent Units Pruop padmand | T Depard mentor Flow of units : mits to be accounted for: Beginning Wife Joventony 9000 child started this period 20500 Tolalunits to account for . 295.00 Varile accounted fondi Completed and stoon ferred 25,500 | 95,500 | 25,500 this in ending chvendowy Logo Prior department 4000 Department T Total units accounted for . 29500 | 89500 Eaplanations : * Completed and fransferred out - (29500 - 1000 Jeneks 95500 units * Units in ending inventorey & Priore department (Hood units X 100-))- 4000 _2000 27500 Department T (hooo units X 504)2000

| Prior i Department Department Total costs to be Flows of coste: Costilo beaccounted for : costs en beginning will bony 1$ 62 aso $ 46550 $ 15,700 Curren periodcast' $ 319 800 5112 750 $ 207,050 -account to be 1$ 382050 9159 30018722750 Cost perlequicale ed unit ficior deparment $ 5.40 Depardmenile Costs accounted forces Costs assigned to uneits transferred out_$ 344aso 137700 $ 206550 Cost of ending will Totalcast acceurgled Tag Divendory$ 37800 $ 21600 $ 16200 for $ 38 2050 $159300 $ 222750 Explanations ; *ens pere equivalenbunif : Priore deparlmand - $ 159300 - 5.40 ( 29500 unids) = $5.40 Department To 1*222750, e *cost assigned launete frangereed out : Priore clepcedmens' - (255000 $15.40)=5 137700 Department T :( ass00x8.30 )= $ 906550 ( 97 scounids - $8.50

* Cost of ending Wrp Inventory? Precare department : 14000XF5' 10) = $ 21600 Department T ( 2000 X $8.10) - $ 16200