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Scribners Corporation produces fine papers in three production departments Pulping, Drying, and Finishing. In the Pulping Dep
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1
Pulping Conversion
Units completed and transferred out 157000 157000
Work in process, ending:
8000 X 100% 8000
8000 X 25% 2000
Equivalent units of production 165000 159000
2
Pulping Conversion
Work in process, March 1 4800 500
Cost added during month 102450 31300
Total costs 107250 31800
Divide by Equivalent units of production 165000 159000
Cost per Equivalent unit 0.65 0.20
3
Pulping Conversion Total
Work in process, ending units 8000 2000
X Cost per Equivalent unit 0.65 0.20
Cost of ending work in process inventory 5200 400 5600
4
Pulping Conversion Total
Units completed and transferred out 157000 157000
X Cost per Equivalent unit 0.65 0.20
Cost of Units completed and transferred out 102050 31400 133450
Cost Reconciliation:
Cost to be accounted for:
Cost of Beginning work in Process inventory 5300
Cost added during May 133750
Total Cost to be accounted for 139050
Cost accounted for as follows:
Cost of Units completed and transferred out 133450
Cost of ending work in process inventory 5600
Total Cost accounted for 139050
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