Scribners Corporation produces fine papers in three production departmentsâPulping, 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: Percent Completed Units Pulping Conversion Work in process inventory, March 1 5,000 100 % 20 % Work in process inventory, March 31 8,000 100 % 25 % Pulping cost in work in process inventory, March 1 $ 4,800 Conversion cost in work in process inventory, March 1 $ 500 Units transferred to the next production department 157,000 Pulping cost added during March $ 102,450 Conversion cost added during March $ 31,300 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. Determine the equivalent units for March for pulping and conversion.
2. Compute the costs per equivalent unit for March for pulping and conversion. (Round your answers to 2 decimal places.)
3. Determine the total cost of ending work in process inventory and the total cost of units transferred to the Finishing Department in March.
4. Prepare a cost reconciliation report for the Drying Department for March
Cots to be accounted for:
Blank Blank amount
Blank Blank amound
Total cash to be accounted for:
Costs accounted for as follows:
Blank Blank amound
Blank Blank amound
Total costs accounted for:
Scribners Corporation produces fine papers in three production departmentsâPulping, 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: Percent Completed Units Pulping Conversion Work in process inventory, March 1 5,000 100 % 20 % Work in process inventory, March 31 8,000 100 % 25 % Pulping cost in work in process inventory, March 1 $ 4,800 Conversion cost in work in process inventory, March 1 $ 500 Units transferred to the next production department 157,000 Pulping cost added during March $ 102,450 Conversion cost added during March $ 31,300 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. Determine the equivalent units for March for pulping and conversion.
2. Compute the costs per equivalent unit for March for pulping and conversion. (Round your answers to 2 decimal places.)
3. Determine the total cost of ending work in process inventory and the total cost of units transferred to the Finishing Department in March.
4. Prepare a cost reconciliation report for the Drying Department for March
Cots to be accounted for:
Blank Blank amount
Blank Blank amound
Total cash to be accounted for:
Costs accounted for as follows:
Blank Blank amound
Blank Blank amound
Total costs accounted for:
Related questions
Papyrutech Corporation produces fine papers in three productiondepartmentsâPulping, Drying, and Finishing. In the PulpingDepartment, raw materials such as wood fiber and rag cotton aremechanically and chemically treated to separate their fibers. Theresult is a thick slurry of fibers. In the Drying Department, thewet fibers transferred from the Pulping Department are laid down onporous webs, pressed to remove excess liquid, and dried in ovens.In the Finishing Department, the dried paper is coated, cut, andspooled onto reels. The company uses the weighted-average method inits process costing system. Data for October for the DryingDepartment follow: |
Percent Completed | ||||||||
| Units | Pulping | Conversion | ||||||
| Work in processinventory, October 1 | 3,800 | 100 | % | 80 | % | |||
| Work in processinventory, October 31 | 5,000 | 100 | % | 75 | % | |||
| Pulping cost in workin process inventory, October 1 | $ | 1,349 | ||||||
| Conversion cost inwork in process inventory, October 1 | $ | 684 | ||||||
| Units transferred tothe next production department | 163,300 | |||||||
| Pulping cost addedduring October | $ | 62,605 | ||||||
| Conversion costadded during October | $ | 36,067 | ||||||
No materials are added in the Drying Department. Pulping costrepresents the costs of the wet fibers transferred in from thePulping Department. Wet fiber is processed in the Drying Departmentin batches; each unit in the above table is a batch and one batchof wet fibers produces a set amount of dried paper that is passedon to the Finishing Department. |
| Required: | |
| 1. | Determine the equivalent unitsfor October for pulping and conversion. |
| Pulping | Conversion | |
| Equivalent units ofproduction | ||
| 2. | Compute the costs per equivalent unit for October for pulpingand conversion. (Round your answers to 2 decimalplaces.) |
| Pulping | Conversion | |
| Cost per equivalentunit | $ | $ |
| 3. | Determine the total cost of ending work in process inventory andthe total cost of units transferred to the Finishing Department inOctober. (Round your costs per equivalent unit to 2 decimalplaces and final answers to the nearest dollaramount.) |
| Pulping | Conversion | Total | |
| Cost of ending workin process inventory | $ | $ | $ |
| Cost of unitscompleted and transferred out | $ | $ | $ |
| 4. | Prepare a cost reconciliationreport for the Drying Department for October. (Round yourfinal answers to the nearest dollar amount.) |
| Cost Reconciliation | |
| Costs to beaccounted for: | |
| (Click toselect)Cost of units completed and transferred outCost of endingwork in process inventoryCost of beginning work in processinventory | $ |
| (Click toselect)Cost of ending work in process inventoryCost of unitscompleted and transferred outCosts added to production during theperiod | |
| Total cost to beaccounted for | $ |
| Costs accounted foras follows: | |
| (Click toselect)Cost of ending work in process inventoryCosts added toproduction during the periodCost of beginning work in processinventory | $ |
| (Click toselect)Cost of beginning work in process inventoryCost of unitscompleted and transferred outCosts added to production during theperiod | |
| Total cost accountedfor | $ |
