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 ((8,900 units, 20% complete with respect to Department T costs)
Transferred-in costs (from Department S)	$	45,140
Department T conversion costs		9,696
Current work (20,300 units started)
Prior department costs		109,620
Department T costs		181,020

The ending inventory has 3,900 units, which are 60 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

Production Cost report

Units to be accounted for
Beginning work in process	8900
Unit started	20300
Total Units to be accounted for	29200
Units accounted as
Unit completed and transferred out	25300
Ending work in process	3900
Total Units accounted as	29200
Equivalent unit
	Physical Unit	Direct material	Conversion
Unit transferred out	25300	25300	25300
Ending work in process	3900	3900	3900*60% = 2340
Equivalent unit of production	29200	29200	27640
Cost per equivalent unit
		Direct material	Conversion
Beginning work in process		45140	9696
Cost added		109620	181020
Total Cost		154760	190716
Equivalent unit		29200	27640
Cost per equivalent unit		5.30	6.90
Cost assignment
Cost accounted for		Direct material	Conversion	Total
Beginning work in process		45140	9696	54836
Cost added		109620	181020	290640
Total Cost accounted for		154760	190716	345476
Cost accounted as
Units transferred out		134090	174570	308660
Ending work in process		20670	16146	36816
Total cost accounted as		154760	190716	345476