Question

Ches 2 Exercise 4-11 Comprehensive Exercise; Second Production Department-weighted Average Method (L04- 2, L04-3, L04-4, LO4-5) 3.33 points 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. eBook ASK Units 3,100 5,600 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 1000 801 1000 750 $ 1,581 $ 1,023 157,100 $ 84,650 $ 58,658 References 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 botch 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

1)
	Units	% of Completion	Equvalent Units of Production -Pulping	% of Completion	Equvalent Units of Production -Conversion
Unit transferred out	157,100	100%	157,100	100%	157,100
Ending work in process	5,600	100%	5,600	75%	4,200 (5,600 x 75% )
Total units	162,700		162,700		161,300
	Pulping	Conversion
Equivalent units of production	162,700	161,300
2)
Particulars	Pulping	Conversion
Work in Process inventory - Beginning	$ 1,581	$ 1,023
Add: Cost added during March	$ 84,650	$ 58,658
Total Cost	$ 86,231	$ 59,681
/ Equivalent units of production	162,700	161,300
Cost per Equivalent unit	$ 0.53	$ 0.37
3)
	Pulping	Conversion	Total
Cost of Ending work in process inventory	$ 2,968 ( 5,600 x $ 0.53 )	$ 1,554 ( 4,200 x $ 0.37 )	$ 4,522
4)
	Pulping	Conversion	Total
Cost of units transferred out	$ 83,263 ( 157,100 x $ 0.53 )	$ 58,127 ( 157,100 x $ 0.37 )	$ 141,390
5)
Drying Department Cost Reconcilation
Cost to be accounted for :
Beginning work in process inventory ( $ 1,581 + $ 1,023 )	$ 2,604
Cost added during march ( $ 84,650 + $ 58,658 )	$ 143,308
Total Cost to be accounted for	$ 145,912
Cost accounted for as follows
Cost of unit transferred out	$ 141,390
Cost of ending work in process	$ 4,522
Total Cost accounted for	$ 145,912