3 Percent Completed UnitsPulping 3,400 Work in process inventory, March 1 Work i

Question

3 Percent Completed UnitsPulping 3,400 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 100% 100% 88% 75% 2 points $ 2,295 $ 1,360 166,480 s 116,985 5 73,176 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.

Explanation / Answer

UNITS TO ACCOUNT FOR: Beginning Work in Process units 3,400 Add: Units Started in Process 167,000 Total Units to account for: 170,400 UNITS TO BE ACCOUNTED FOR: Units started and completed 166,400 Ending Work in Process 4,000 Total Units to be accounted for: 170,400 Equivalent Units: Material Cost Conversion % Completion Units % Completion Units Units started and completed 100% 166,400 100% 166,400 Ending Work in Process 100% 4,000 75% 3,000 Total Equivalent units 170,400 169,400 TOTAL COST TO ACCOUNT FOR: Material Conversion Beginning work in Process 2,295 1,360 Cost Added during May 116,985 73,176 Total Cost to account for: 119,280 74,536 Total Cost to account for: 193,816 COST PER EQUIVALENT UNIT: Material Conversion Total cost added during the year 119,280 74,536 Equivalent Units 170,400 169,400 Cost per Equivalent unit 0.7 0.44 TOTAL COST ACCOUNTED FOR: Units started and Transferred out (166400 units) Equivalent unit Cost per EU Total Cost Material 166,400 0.7 116480 Conversion Cost 166,400 0.44 73216 Total Cost of Units completed and transferred out: 189696 Ending Work in process (4,000 units) Equivalent unit Cost per EU Total Cost Material 4,000 0.7 2800 Conversison Cost 3,000 0.44 1320 Total cost of Ending Work in process: 4,120 Req 1. Material Converesion Equivalent units 170400 169400 Req 2. Material Converesion Cost per EUP 0.7 0.44 Req 3. Cost of Ending WIP:   $ 4120 Req 4. Cost of Units completed: $ 189696 Req 5. Reconciliation Report: Cost to account for: Cost of beginning WIP (2295+1360) 3655 Current cost (116985+73176) 190161 Total cost to account ffor 193816 Cost accounted for: Cost of Units completed 189696 Cost of ending WIP 4120 Total cost accounted for 193816 Difference 0

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