Question

In: Accounting

Lansing, Inc. provides the following information for one of its department’s operations for June (no new...

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 (8,500 units, 30% complete with respect to Department T costs)
Transferred-in costs (from Department S) $ 39,700
Department T conversion costs 15,190
Current work (19,500 units started)
Prior department costs 97,500
Department T costs 168,350

The ending inventory has 3,500 units, which are 60 percent complete with respect to Department T costs and 100 percent complete for prior department costs.

Required:

Complete the production cost report using FIFO. (Round "Cost per equivalent unit" to 2 decimal places.)

Solutions

Expert Solution

Cost report is the step 4

STEP 1
Reconciliation of Units
Units % already completed % completed this period
Department S Department T Department S Department T
Beginning WIP               8,500 100% 30% 0% 70%
Units introduced             19,500
Total units to be accounted for             28,000
Completed and Transferred unit             24,500 0% 0% 100% 100%
Ending WIP               3,500 0% 0% 100% 60%
STEP 2
Equivalent Units
Total Units Department S Department T
Units Transferred: % completed this period Equivalent Units % completed this period Equivalent Units
From WIP               8,500 0%                 -   70%                          5,950
From units started/Introduced             16,000 100%       16,000 100%                        16,000
Total             24,500       16,000                        21,950
Total Units Department S Department T
Ending WIP % completed this period Equivalent Units % completed this period Equivalent Units
Total               3,500 100%          3,500 60%                          2,100
Total EUP             28,000       19,500                        24,050
STEP 3
Cost per Equivalent Units AND Cost to be accounted for
Department S Department T TOTAL
Cost incurred in Current Period $                            97,500.00 $                         1,68,350.00 $          2,65,850.00
Total Equivalent Units $                            19,500.00 $                            24,050.00
Cost per Equivalent Units $                                       5.00 $                                       7.00
Cost of Beginning WIP $                            39,700.00 $                            15,190.00 $             54,890.00
Total cost to be accounted for $          3,20,740.00
STEP 4
Cost report [Including Reconciliation]
Cost of Units Transferred          24,500.00 units
Equivalent Units [Step 2] Cost per Equivalent Units [Step 3] Cost of Units Transferred TOTAL
A From Beginning WIP:
Department S                    -   $        5.00 $                     -  
Department T             5,950 $        7.00 $      41,650.00 $             41,650.00
B From units started & completed
Department S           16,000 $        5.00 $      80,000.00
Department T           16,000 $        7.00 $ 1,12,000.00 $          1,92,000.00
C=A+B Total $          2,33,650.00
D Cost of Beginning WIP $             54,890.00
E=C+D Total Cost of Units transferred $          2,88,540.00
Cost of Ending WIP             3,500.00 units
Equivalent Units [Step 2] Cost per Equivalent Units [Step 3] Cost of Ending WIP TOTAL
F Department S             3,500 $        5.00 $      17,500.00
G Department T             2,100 $        7.00 $      14,700.00
H = F + G Total Cost of Ending WIP $             32,200.00
I = E + H Total Cost accounted for $          3,20,740.00
J Rounding Off Differences $                             -  
K = I + J Total cost to be accounted for [equals to computed in STEP 3] $          3,20,740.00

Related Solutions

Lansing, Inc. provides the following information for one of its department’s operations for June (no new...
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 ((8,000 units, 20% complete with respect to Department T costs) Transferred-in costs (from Department S) $ 33,350 Department T conversion costs 9,020 Current work (18,500 units started) Prior department costs 83,250 Department T costs 168,480 The ending inventory has 3,000 units, which are 50 percent complete with respect to Department T costs and...
Lansing, Inc. provides the following information for one of its department’s operations for June (no new...
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 (15,000 units, 60% complete with respect to Department T costs) Transferred-in costs (from Department S) $ 116,000 Department T conversion costs 53,150 Current work (35,000 units started) Prior department costs 280,000 Department T costs 209,050 The ending inventory has 5,000 units, which are 20 percent complete with respect to Department T costs and...
Lansing, Inc. provides the following information for one of its department’s operations for June (no new...
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 ((9,400 units, 20% complete with respect to Department T costs) Transferred-in costs (from Department S) $ 52,390 Department T conversion costs 11,206 Current work (21,300 units started) Prior department costs 125,670 Department T costs 202,950 The ending inventory has 4,400 units, which are 60 percent complete with respect to Department T costs and...
Lansing, Inc. provides the following information for one of its department’s operations for June (no new...
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 (8,700 units, 20% complete with respect to Department T costs) Transferred-in costs (from Department S) $ 42,380 Department T conversion costs 10,338 Current work (19,900 units started) Prior department costs 103,480 Department T costs 190,350 The ending inventory has 3,700 units, which are 60 percent complete with respect to Department T costs and...
Lansing, Inc. provides the following information for one of its department’s operations for June (no new...
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 ((9,300 units, 30% complete with respect to Department T costs) Transferred-in costs (from Department S) $ 50,900 Department T conversion costs 20,890 Current work (21,100 units started) Prior department costs 122,380 Department T costs 216,410 The ending inventory has 4,300 units, which are 50 percent complete with respect to Department T costs and...
Lansing, Inc. provides the following information for one of its department’s operations for June (no new...
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 (9,300 units, 30% complete with respect to Department T costs) Transferred-in costs (from Department S) $ 50,900 Department T conversion costs 20,890 Current work (21,100 units started) Prior department costs 122,380 Department T costs 216,410 The ending inventory has 4,300 units, which are 50 percent complete with respect to Department T costs and...
Lansing, Inc. provides the following information for one of its department’s operations for June (no new...
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 (9,300 units, 30% complete with respect to Department T costs) Transferred-in costs (from Department S) $ 50,900 Department T conversion costs 20,890 Current work (21,100 units started) Prior department costs 122,380 Department T costs 216,410 The ending inventory has 4,300 units, which are 50 percent complete with respect to Department T costs and...
Lansing, Inc. provides the following information for one of its department’s operations for June (no new...
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 (8,200 units, 20% complete with respect to Department T costs) Transferred-in costs (from Department S) $ 35,830 Department T conversion costs 8,930 Current work (18,900 units started) Prior department costs 88,830 Department T costs 167,020 The ending inventory has 3,200 units, which are 50 percent complete with respect to Department T costs and...
Lansing, Inc. provides the following information for one of its department’s operations for June (no new...
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 (7,900 units, 20% complete with respect to Department T costs) Transferred-in costs (from Department S) $ 32,140 Department T conversion costs 8,556 Current work (18,300 units started) Prior department costs 80,520 Department T costs 164,220 The ending inventory has 2,900 units, which are 60 percent complete with respect to Department T costs and...
Lansing, Inc. provides the following information for one of its department’s operations for June (no new...
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 (15,000 units, 60% complete with respect to Department T costs) Transferred-in costs (from Department S) $ 116,000 Department T conversion costs 53,150 Current work (35,000 units started) Prior department costs 280,000 Department T costs 209,050 The ending inventory has 5,000 units, which are 20 percent complete with respect to Department T costs and...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT