Question

Scribners Corporation produces fine papers in three production departments—Pulping, Drying, and Finishing. In the Pulping Department,...

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:

Percent Completed
Units Pulping Conversion
Work in process inventory, March 1 3,400 100 % 80 %
Work in process inventory, March 31 6,800 100 % 75 %
Pulping cost in work in process inventory, March 1 $ 1,445
Conversion cost in work in process inventory, March 1 $ 850
Units transferred to the next production department 147,900
Pulping cost added during March $ 68,170
Conversion cost added during March $ 43,520

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.

Homework Answers

Answer #1

Requirement 1

Pulping Conversion
Equivalent Units of Production                  154,700           153,000

Requirement 2

Pulping Conversion
Cost per equivalent Unit $                    0.45 $              0.29

Requirement 3 and 4

Pulping Conversion Total
Ending Inventory $ 3,060 $ 1,479 $ 4,539
Units Completed and transferred $ 66,555 $ 42,891 $ 109,446

Requirement 5

Cost Reconciliation
Costs to be accounted for:
Beginning Wip cost $ 2,295
Cost incurred during period $ 111,690
Total cost to be accounted for $ 113,985
Costs accounted for as follows:
Cost of Units Transferred Out $ 109,446
Cost of Ending Wip $ 4,539
Total cost accounted for $ 113,985

Working

Statement of Equivalent Units(Weighted average)
Pulping Conversion cost
Units Complete % Equivalent units Complete % Equivalent units
Transferred                  147,900 100%           147,900.0 100%       147,900
Closing WIP                      6,800 100%                6,800.0 75%            5,100
Total                  154,700 Total           154,700.0 Total       153,000

.

Cost per Equivalent Units (Weighted average)
COST Pulping Conversion cost TOTAL
Beginning WIP Inventory Cost $ 1,445 $ 850 $ 2,295
Cost incurred during period $ 68,170 $ 43,520 $ 111,690
Total Cost to be accounted for $ 69,615 $ 44,370 $ 113,985
Total Equivalent Units           154,700                  153,000
Cost per Equivalent Units $              0.45 $                     0.29

.

Statement of cost (Weighted average)
Cost Equivalent Cost/unit Ending WIP Transferred
Units Cost Allocated Units Cost Allocated
Pulping $ 0.45                6,800 $             3,060.00             147,900 $ 66,555
Conversion cost $ 0.29                5,100 $             1,479.00             147,900 $       42,891.00
TOTAL $ 113,985 TOTAL $ 4,539 TOTAL $ 109,446
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Scribners Corporation produces fine papers in three production departments—Pulping, Drying, and Finishing. In the Pulping Department,...
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...
Scribners Corporation produces fine papers in three production departments—Pulping, Drying, and Finishing. In the Pulping Department,...
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...
Scribners Corporation produces fine papers in three production departments—Pulping, Drying, and Finishing. In the Pulping Department,...
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...
Scribners Corporation produces fine papers in three production departments—Pulping, Drying, and Finishing. In the Pulping Department,...
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...
Old Country Links, Inc., produces sausages in three production departments—Mixing, Casing and Curing, and Packaging. In...
Old Country Links, Inc., produces sausages in three production departments—Mixing, Casing and Curing, and Packaging. In the Mixing Department, meats are prepared and ground and then mixed with spices. The spiced meat mixture is then transferred to the Casing and Curing Department, where the mixture is force-fed into casings and then hung and cured in climate-controlled smoking chambers. In the Packaging Department, the cured sausages are sorted, packed, and labeled. The company uses the weighted-average method in its process costing...
Helix Corporation uses the weighted-average method in its process costing system. It produces prefabricated flooring in...
Helix Corporation uses the weighted-average method in its process costing system. It produces prefabricated flooring in a series of steps carried out in production departments. All of the material that is used in the first production department is added at the beginning of processing in that department. Data for May for the first production department follow: Percent Complete Units Materials Conversion Work in process inventory, May 1 73,000 100 % 50 % Work in process inventory, May 31 53,000 100...
Helix Corporation produces prefabricated flooring in a series of steps carried out in production departments. All...
Helix Corporation produces prefabricated flooring in a series of steps carried out in production departments. All of the material that is used in the first production department is added at the beginning of processing in that department. Data for May for the first production department follow:      Percent Complete Units Materials Conversion   Work in process inventory, May 1 57,000 85 % 50 %   Work in process inventory, May 31 37,000 60 % 30 %      Materials cost in work in...
Helix Corporation produces prefabricated flooring in a series of steps carried out in production departments. All...
Helix Corporation produces prefabricated flooring in a series of steps carried out in production departments. All of the material that is used in the first production department is added at the beginning of processing in that department. Data for May for the first production department follow: Percent Complete Units Materials Conversion Work in process inventory, May 1 5,000 100 % 40 % Work in process inventory, May 31 10,000 100 % 30 % Materials cost in work in process inventory,...
Helix Corporation produces prefabricated flooring in a series of steps carried out in production departments. All...
Helix Corporation produces prefabricated flooring in a series of steps carried out in production departments. All of the material that is used in the first production department is added at the beginning of processing in that department. Data for May for the first production department follow:      Percent Complete Units Materials Conversion   Work in process inventory, May 1 63,000 85 % 50 %   Work in process inventory, May 31 43,000 60 % 30 %      Materials cost in work in...
7.) The following production data were taken from the records of the Finishing Department for the...
7.) The following production data were taken from the records of the Finishing Department for the month of June: Inventory in process, June 1 (15% complete as to conversion) 4,000 units Completed units during June 71,000 units Ending inventory (60% complete as to conversion) 7,000 units Complete the chart below and determine the number of equivalent units of production for materials and conversion for June 30. Determine the cost per unit if the Materials cost incurred was $90,500 & Conversion...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT