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 (15,000 units, 60% complete with respect to Department T costs) Transferred-in costs (from Department S) Department T conversion costs Current work (35,000 units started) Prior department costs Department T costs $ 116,000 53,150 280,000 209,050 The ending inventory has 5,000 units, which are 20 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 Department Department Prior 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 Prior Desmont I Department ant Department T 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 T Costs accounted for Costs assigned to units transferred out Costs of ending WIP inventory

Answer 1

Solution a:

Lansing Inc.
Particulars	Physical units	Equivalent units
		Prior Department	Department T
Flow of units:
Units to be accounted for:
Beginning WIP inventory	15000
Units started this period	35000
Total units to account for	50000
Units accounted for:
Completed and transferred out	45000	45000	45000
Units in ending inventory	5000
Prior department		5000
Department T			1000
Total units accounted for	50000	50000	46000

Lansing Inc.
Particulars	Total	Equivalent units
		Prior Department	Department T
Flow of costs:
Costs to be accounted for:
Costs in beginning inventory	$169,150.00	$116,000.00	$53,150.00
Current period costs	$489,050.00	$280,000.00	$209,050.00
Total costs to be accounted for	$658,200.00	$396,000.00	$262,200.00
Cost per equivalent unit:
Prior department		$7.92
Department T			$5.70
Costs accounted for:
Costs assigned to units transferred out	$612,900.00	$356,400.00	$256,500.00
Costs of ending inventory	$45,300.00	$39,600.00	$5,700.00
Total costs accounted for	$658,200.00	$396,000.00	$262,200.00