Question

Scribners corporation produces

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 Units 3,800 5,000 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 Percent Completed Pulping Conversion 1001 80 1001 754 $ 1,349 $ 684 163,300 $ 62,605 $36,067 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.

Answer 1

Calculation of Drying Department Equivalent Costs Requirement1 Particulars pulping Conversion Units completed and transferred out 163300 163300 Work in process, ending: 5000 X 100% 5000 5000 X 75% 3750 Equivalent units of production 168300 167050 Requirement2 Particulars Work in process, March 1 Cost added during month Total costs Divide by Equivalent units of production Cost per Equivalent unit Pulping Conversion $ 1,349.00 $ 684.00 $ 62,605.00 $ 36,067.00 $ 63,954.00 $ 36,751.00 168300 167050 $ 0.38 $ 0.22 Requirements Particulars Pulping Conversion Total Work in process, ending units 5000 3750 X Cost per Equivalent unit $ 0.38 $ 0.22 Cost of ending work in process invent $ 1,900.00 $ 825.00 $ 2,725.00 Requirement4 Particulars Pulping Conversion Total Units completed and transferred out 163300 163300 Cost per Equivalent unit $ 0.38 $ 0.22 Cost of Units completed and transferr $ 62,054.00$ 35,926.00 $ 97,980.00 Requirements Drying Department/Cost Reconciliation: Amount Cost to be accounted for: Cost of Beginning work in Process invento $ 2,033.00 Cost added during May $ 98,672.00 Total Cost to be accounted for $1,00,705.00 Cost accounted for as follows: Cost of Units completed and transferred of $ 97,980.00 Cost of ending work in process inventory $ 2,725.00 Total Cost accounted for $1,00,705.00 * Kindly Comment down for any clarifications/ queries and please upvote.