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 ((9,500 units, 30% complete with respect to Department T costs)
Transferred-in costs (from Department S)	$	53,900
Department T conversion costs		21,920
Current work (21,500 units started)
Prior department costs		129,000
Department T costs		225,330

The ending inventory has 4,500 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.)

	Physical Units	Equivalent Units
		Prior Department	Department T
Flow of units:
Units to be accounted for:
Beginning WIP inventory
Units started this period
Total units to account for
Units accounted for:
Completed and transferred out
Units in ending inventory
Prior department
Department T
Total units accounted for

	Total	Prior Department	Department T
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 of ending WIP inventory
Total costs accounted for

Thank you for your help!

Answer 1

		Equivalent Units
	Physical Units	Prior Department	Department T
Flow of units:
Units to be accounted for:
Beginning WIP inventory	9,500
Units started this period	21,500
Total units to account for	31,000
Units accounted for:
Completed and transferred out	26,500	26,500	26,500
Units in ending inventory	4,500
Prior department		4,500
Department T			2,250
Total units accounted for	31,000	31,000	28,750

	Total	Prior Department	Department T
Flow of costs:
Costs to be accounted for:
Costs in beginning WIP inventory	$              75,820.00	$              53,900.00	$             21,920.00
Current period costs	$            354,330.00	$            129,000.00	$           225,330.00
Total costs to be accounted for	$            430,150.00	$            182,900.00	$           247,250.00
Cost per equivalent unit
Prior department		$                         5.90
Department T			$                        8.60
Costs accounted for:
Costs assigned to units transferred out	$            384,250.00	$            156,350.00	$           227,900.00
Costs of ending WIP inventory	$              45,900.00	$              26,550.00	$             19,350.00
Total costs accounted for	$            430,150.00	$            182,900.00	$           247,250.00