Question

Exercise 8-42 (Algo) Prepare a Production Cost Report: Weighted-Average Method (LO 8-2, 3, 4, 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 ((8,100 units, 20% complete with respect to Department T costs)
Transferred-in costs (from Department S)	$	34,580
Department T conversion costs		7,974
Current work (18,700 units started)
Prior department costs		86,020
Department T costs		155,610

The ending inventory has 3,100 units, which are 60 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 WP 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 00 Total Prior Department Department S OS Flow of costs: Costs to be accounted for Costs in beginning WP 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 WP inventory Total costs accounted for T L 5 05 0 5 0

Answer 1

The answer has been presented in the supporting sheet. All the parts has been solved with detailed explanation and format. For detailed answer refer to the supporting sheet.

Answer Physical Units Equivalent Units Prior Department Department 8100 18700 26800 4 Flow of Units 5 Units to be accounted for 6 Beginning WIP Inventory 7 Units started this period 8 Total units to account for 9 Units accounted for 10 Completed and transferred out 11 Units in ending inventory Prior Department 23700 23700 (23700*100%) 23700 (23700*100%) 3100 3100 (3100*100%) Department 1860 (3100*60%) 25560 Total Units accounted for 26800 26800

E Total Prior Department Department 20 Flow of Cost 21 Costs to be accounted for 22 Cost of Beginning WIP Inventory 23 Current Period Costs Total Costs to be accounted for 25 Cost per equivalent unit 26 Prior department 42554 241630 284184 34580 86020 120600 7974 155610 163584 4.5 (120600/26800) 28 Department I 6.4 (163584/25560) 30 Costs accounted for: 31 Cost assigned to units transferred out Costs of ending WIP inventory Total costs accounted for 258330 25854 284184 106650 13950 120600 151680 11904 163584 35 Note the unbold amounts are not part of final answer. These are just for understanding purpses only.