Question

One question, five parts to the same 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: Units 3,200 8,80 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 100% 80% 100% 75% $ 1,584 $ 1,024 152, Bee $ 81,616 $ 55,856 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 equivalent units of production for pulping and conversion in March. Pulping Conversion Equivalent units of production < Required 1 Required 2 >

Answer 1

1)	Equivalent units of production
					units	%	pulping	%	CC
	Completed & transferred				152,000	100%	152,000	100%	152,000
	work in process inventory,March 31				8,000	100%	8,000	75%	6000
	Equivalent units of production						160,000		158,000
2)	cost per Equivalent units
						pulping	CC	total
	Beginning work in process					1,584	1,024	2,608
	cost added during the year					81,616	55,856	137,472
	total cost					83,200	56,880	140,080
	equivalent units					160,000	158,000
	cost per EUP					0.52	0.36	0.88
3)	Cost of ending work in proces
	pulping	8,000	*	0.52	=	4160
	Conversion	6000	*	0.36	=	2160
	Cost of ending work in proces							6320	answer
4)	Cost of units transferred
	pulping	152,000	*	0.52	=	79040
	conversion	152,000	*	0.36	=	54720
	Cost of units transferred							133760	answer
5)	CostReconcilation report
	cost to be accounted for
	cost of beginning work in process inventory					2,608
	Cost added to production during the period					137,472
	cost to be accounted					140,080
	cost accounted for
	cost of units completed & transferred out					133,760
	Cost of ending work in process inventory					6320
	Total cost accounted for					140,080