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 3,000 6,080 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% Be 100% 75% $ 1,545 $ 1,020 156,980 $ 86,421 $ 60, 312 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. 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

Answer 1

Answer Page: No ) O Equivalent units of production for pulping & conversion to march Equivalent units of production for pulping (156900x100 %.) + (6000X100%) = 156900 + 6000 162900 2 Equivalent unils of production for conversion (156900X100%) + (6000 X 757) 156900 + 4500 161400 slot per equivalents unit for pulping & conversion Cost per equivalentant for pulping 1545 +86421 162900 units per unit Cost por equivalent unit for conversion - 1020460312 161400 $0.38 perunit @capte of ending work in process for entong for peloping conversion and total in march Ending work in process inventory for pulping = 0.54X6000 = 3240 $0.54

NO 2 Page: No Ending work in process inventory for conversion 4500 * $0.38 $ 1710 Pulping conversion Total Ending work in process inventory $32 40 $ 1710 $ 4950 u units transferred out to the finishing department for pulping conversion & total in march on onilă completed Ę transferred out cook for pulping $156900 x0.54 $ 84726 units completed & transferred out cost for conversion 156900 X 0:38 $59622 Pulping Conversion Total Icoof of units completed & transsexued $84726 $59622 $144348 © cost reconciliation Particular Amount cost to be accounted for Beginning work in process corf (154541020) 4 2565 coop incurred during period (8642/ +60312) $146,733 Total cost to be accounted for $149298 cost of units transferred out $144348 Cost of Ending WIP $ 4950 Total cost accounted for $ 149298