Question

Lansing, Inc. provides the following information for one of its department's operations for June (no new material is added in Department T): WIP inventory- Department T Beginning inventory (7,800 units, 25% complete with respect to Department T costs) Transferred-in costs (from Department S) Department T conversion costs Current work (18,100 units started) Prior department costs Department T costs 30,950 11,200 77,830 157,850 The ending inventory has 2,800 units, which are 50 percent complete with respect to Department T costs and 100 percent complete for prior department costs Required Complete the production cost report using FIFO. (Round "Cost per equivalent unit" to 2 decimal places.) Physical Units Equivalent Units Prior Department Department Flow of units Units to be accounted for Beginning WIP inventory Units started this period Total units to account for Units accounted for Completed and transferred out From beginning WIP inventory Prior department Department T Started and completed currently Units in ending WIP inventory Prior department Department T Total units accounted for

Answer 1

Answer

	Physical Units	Prior Department	Department T
Flow of Units:
Units to be accounted for:
Beginning WIP inventory	7,800
Units started this period	18,100
Total Units to account for	25,900
Units accounted for:
Completed & Transferred out
From Beginning WIP Inventory	7,800
Prior Department		-
Department T			5,850 [7800 x 75%]
Started & Completed currently	15,300	15,300	15,300
Units in Ending WIP Inventory	2,800
Prior Department		2,800 [2800 x 100%]
Department T			1,400 [2800 x 50%]
Total units accounted for	25,900	18,100	22,550