Question

I only need parts 4 and 5

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 3,400 4,000 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 100% 80% 100% 75% $ 2,295 $ 1,360 166,400 $116,985 $ 73,176 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.

Answer 1

1) Equivalent unit

	Whole Unit	% pulping	EUP-Pulping	% conversion	EUP-Conversion
Unit transferred out	166400	100%	166400	100%	166400
Ending WIP	4000	100%	4000	75%	3000
Total	170400		170400		169400

2) Cost per equivalent unit

	Material	Conversion
Beginning WIP	2295	1360
Cost added	116985	73176
Total Cost	119280	74536
Equivalent unit	170400	169400
Cost per equivalent unit	0.70	0.44

3) Cost of ending WIP

	Material	Conversion	Total
Cost of Ending WIP	4000*.70 = 2800	3000*.44 = 1320	4120

4) Cost of unit transferred out

	Material	Conversion	Total
Cost of unit transferred out	166400*.70 = 116480	166400*.44 = 73216	189696

5) Cost reconciliation

Cost to be accounted for
Beginning WIP	3655
Cost added	190161
Total Cost to be accounted for	193816
Cost accounted as
Cost of unit transferred out	189696
Cost of ending WIP	4120
Total Cost accounted as	193816