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 4.500 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 вах 100% Bax $ 1,815 $ 1,254 163,900 $ 95,857 $ 69,096 es No materials are added in the Drying Department. Pulping cost represents the costs of the wet fibers transferred in fro 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 2 >

Answer 1

1
	Pulping	Conversion
Units completed and transferred out	163900	163900
Work in process, ending:
4500 X 100%	4500
4500 X 80%		3600
Equivalent units of production	168400	167500
2
	Pulping	Conversion
Work in process, March 1	1815	1254
Cost added during month	95857	69096
Total costs	97672	70350
Divide by Equivalent units of production	168400	167500
Cost per Equivalent unit	0.58	0.42

3
	Pulping	Conversion	Total
Work in process, ending units	4500	3600
X Cost per Equivalent unit	0.58	0.42
Cost of ending work in process inventory	2610	1512	4122

4
	Pulping	Conversion	Total
Units completed and transferred out	163900	163900
X Cost per Equivalent unit	0.58	0.42
Cost of Units completed and transferred out	95062	68838	163900
Cost Reconciliation:
Cost to be accounted for:
Cost of Beginning work in Process inventory	3069	(1815+1254)
Cost added during May	164953	(95857+69096)
Total Cost to be accounted for	168022
Cost accounted for as follows:
Cost of Units completed and transferred out	163900
Cost of ending work in process inventory	4122
Total Cost accounted for	168022

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