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 (9,880 units, 25% complete with respect to Department T costs) Transferred-in costs (from Department S) Department T conversion costs Current work (20,5ee units started) Prior department costs Department T costs 46.550 15,700 112,750 207.ese The ending Inventory has 4,000 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 WP inventory Units started this period Total units to account for Units accounted for Completed and transferred out From beginning WP inventory Prior department Department T Started and completed currently Units in ending WP inventory Prior department Department T Total units accounted for Department Total Prior Department Flow of costs: Costs to be accounted for: Costs in beginning WIP inventory Current period costs Total costs to be accounted for Cost per equivalent unit Prior department Department T Costs accounted for Costs assigned to units transferred out Costs from beginning WIP inventory Current costs added to complete beginning WIP inventory Prior department Department Current costs of units started and completed: Prior department Department T Total costs transferred out Cost of ending WIP inventory Prior department Department T Total costs accounted for

Answer 1

		Equivalent Units
	Physical Units	Prior Department	Department T
Flow of units:
Units to be accounted for:
Beginning WIP inventory	9000
Units started this period	20500
Total units to account for	29500
Units accounted for:
Completed and transferred out
From beginning WIP inventory	9000
Prior department		0
Department T [9,000 units x (1–25%)]			6750
Started and completed currently	16500	16500	16500
Units in ending WIP inventory	4000
Prior department		4000
Department T (4,000 units x 50%)			2000
Total units accounted for	29500	20500	25250
	Total	Prior Department	Department T
Flow of costs:
Costs to be accounted for:
Costs in beginning WIP inventory	62250	46550	15700
Current period costs	319800	112750	207050
Total costs to be accounted for	382050	159300	222750
Cost per equivalent unit
Prior department ($112750 ÷ 20500 units)		5.50
Department. T ($222750 ÷ 25250 units)			8.20
Costs accounted for:
Costs assigned to units transferred out:
Costs from beginning WIP inventory	62250	46550	15700
Current costs added to complete
beginning WIP inventory	55350
Prior department		0
Department T ($8.20 x 6,750 units)			55350
Current costs of units started and completed:	226050
Prior department ($5.50 x 16500)		90750
Department T ($8.20 x 16500)			135300
Total costs transferred out	343650	137300	206350
Cost of ending WIP inventory	38400
Prior department ($5.5 x 4,000)		22000
Department T ($8.20 x 2,000)			16400
Total costs accounted for	$382050	$159300	$222750

Started and completed currently = units started –units in ending WIP inventory = 20500-4000 = 16500