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) $ 30,950 Department T conversion costs 11,200 Current work (18,100 units started) Prior department costs 77,830 Department T costs 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: a. Complete the production cost report using the weighted-average method. (Round "Cost per equivalent unit" to 2 decimal places.)

Answer 1

Production Cost report
Cost to be accounted for
Beginning Work In Progress:
Transferred in cost	$ 30,950
Conversion cost	$ 11,200	$ 42,150
Cost incurred during period:
Transferred in cost	$ 77,830
Conversion cost	$ 157,850	$ 235,680
Total Cost to be accounted for				$ 277,830
Cost accounted for
Cost of Units transferred	Equivalent Units	Cost per Equivalent Units	Cost accounted for
Transferred in cost	23,100	$ 4.20	$ 97,020
Conversion cost	23,100	$ 6.90	$ 159,390
				$ 256,410
Cost of ending WIP	Equivalent Units	Cost per Equivalent Units	Cost accounted for
Transferred in cost	2,800	$ 4.20	$ 11,760
Conversion cost	1,400	$ 6.90	$ 9,660
				$ 21,420
Total Cost accounted for				$ 277,830

Working

Reconciliation of Units
A	Opening WIP	7,800
B	Introduced	18,100
C=A+B	TOTAL	25,900
D	Transferred	23,100
E=C-D	Closing WIP	2,800

Statement of Equivalent Units
				Transferred in cost		Conversion cost
	Units			Complete %	Equivalent units	Complete %	Equivalent units
Transferred	23,100			100%	23,100.0	100%	23,100
Closing WIP	2,800			100%	2,800.0	50%	1,400
Total	25,900			Total	25,900.0	Total	24,500

Cost per Equivalent Units
COST		Transferred in cost	Conversion cost	TOTAL
Beginning WIP Inventory Cost		$         30,950	$        11,200	$           42,150
Cost incurred during period		$         77,830	$     1,57,850	$       2,35,680
Total Cost to be accounted for		$      1,08,780	$     1,69,050	$       2,77,830
Total Equivalent Units		25,900	24,500
Cost per Equivalent Units		$              4.20	$             6.90	$             11.10

Statement of cost
Cost	Equivalent Cost/unit	Ending WIP		Transferred
		Units	Cost Allocated	Units	Cost Allocated
Transferred in cost	$                    4.20	2,800	$        11,760	$           23,100	$             97,020
Conversion cost	$                    6.90	1,400	$           9,660	$           23,100	$         1,59,390
TOTAL	$            2,77,830	TOTAL	$        21,420	TOTAL	$         2,56,410