Question

Scribners Corporation produces fine papers in three production departments-Pulping, Drying, and Finishing. In the Pulping Department, raw materials such as wood fiber and rag cotton are mechanically and chemically treated to separate their fibers. The result is a thick slurry of fibers. In the Drying Department, the wet fibers transferred from the Pulping Department are laid down on porous webs, pressed to remove excess liquid, and dried in ovens. In the Finishing Department, the dried paper is coated, cut, and spooled onto reels. The company uses the weighted average method in its process costing system. Data for March for the Drying Department follow: points (8 04:26:06 Units 3,800 5,000 Percent Completed Pulping Conversion 100% 80% 100% 75% $ 1,349 $ 684 163,300 $ 62,605 $36,067 Work in process inventory, March 1 Work in process inventory, March 31 Pulping cost in work in process inventory, March 1 Conversion cost in work in process inventory, March 1 Units transferred to the next production department Pulping cost added during March Conversion cost added during March eBook Print No materials are added in the Drying Department. Pulping cost represents the costs of the wet fibers transferred in from the Pulping Department. Wet fiber is processed in the Drying Department in batches; each unit in the above table is a batch and one batch of wet fibers produces a set amount of dried paper that is passed on to the Finishing Department. Required: 1. Compute the Drying Department's equivalent units of production for pulping and conversion in March. 2. Compute the Drying Department's cost per equivalent unit for pulping and conversion in March. 3. Compute the Drying Department's cost of ending work in process inventory for pulping, conversion, and in total for March. 4. Compute the Drying Department's cost of units transferred out to the Finishing Department for pulping, conversion, and in total in March. 5. Prepare a cost reconciliation report for the Drying Department for March. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Compute the Drying Department's cost of ending work in process inventory for pulping, conversion, and in total for March. (Round your intermediate calculations to 2 decimal places.) Pulping Conversion Total Cost of ending work in process inventory Required 2 Required 4 >

Answer 1

1) Equivalent unit

	EUP-Material	EUP-Conversion
Unit transferred out	163300	163300
Ending WIP	5000	5000*75% = 3750
Equivalent unit	168300	167050

2) Cost per equivalent unit

	Material	Conversion
Beginning WIP	1349	684
Cost added	62605	36067
Total Cost	63954	36751
Equivalent unit	168300	167050
Cost per equivalent unit	0.38	0.22

3) Cost of ending WIP

	Material	Conversion	Total
Cost of ending WIP	5000*.38 = 1900	3750*.22 = 825	2725

4) Cost of unit transferred out

	Material	Conversion	Total
Cost of unit transferred out	163300*.38 = 62054	35926	97980

5) Cost reconciliation

Cost to be accounted for
Beginning WIP	2033
Cost added	98672
Total cost to be accounted for	100705
Cost accounted as
Cost of unit transferred out	97980
Cost of ending WIP	2725
Total cost accounted as	100705