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 ((8,600 units, 20% complete with respect to Department T costs)
Transferred-in costs (from Department S)	$	41,030
Department T conversion costs		11,110
Current work (19,700 units started)
Prior department costs		100,470
Department T costs		198,240

The ending inventory has 3,600 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

		Equivalent Units
	Physical Units	Prior Department	Department T
Flow of units:
Units to be accounted for:
Beginning WIP inventory	8,600
Units started this period	19,700
Total units to account for	28,300
Units accounted for:
Completed and transferred out [28300 – 3600]	24,700	24,700	24,700
Units in ending inventory	3,600
Prior department		3,600
Department T			1,800
Total units accounted for	28,300	28,300	26,500

	Total	Prior Department	Department T
Flow of costs:
Costs to be accounted for:
Costs in beginning WIP inventory	$              52,140.00	$              41,030.00	$             11,110.00
Current period costs	$            298,710.00	$            100,470.00	$           198,240.00
Total costs to be accounted for	$            350,850.00	$            141,500.00	$           209,350.00
Cost per equivalent unit
Prior department		$                         5.00
Department T			$                        7.90
Costs accounted for:
Costs assigned to units transferred out	$            318,630.00	$            123,500.00	$           195,130.00
Costs of ending WIP inventory	$              32,220.00	$              18,000.00	$             14,220.00
Total costs accounted for	$            350,850.00	$            141,500.00	$           209,350.00