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 (8,700 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 100 percent complete for prior department costs.

Required:

Complete the production cost report using FIFO. (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	8700
Units started this period	19900
Total units to account for	28600
Units accounted for:
Completed and transferred out
From beginning WIP inventory	8700
Prior department		0
Department T [8700 units x (1–20%)]			6960
Started and completed currently	16200	16200	16200
Units in ending WIP inventory	3700
Prior department		3700
Department T (3700 units x 60%)			2220
Total units accounted for	28600	19900	25380
	Total	Prior Department	Department T
Flow of costs:
Costs to be accounted for:
Costs in beginning WIP inventory	52718	42380	10338
Current period costs	293830	103480	190350
Total costs to be accounted for	346548	145860	200688
Cost per equivalent unit
Prior department ($103480 ÷ 19900 units)		5.20
Department. T ($190350 ÷ 25380 units)			7.50
Costs accounted for:
Costs assigned to units transferred out:
Costs from beginning WIP inventory	52718	42380	10338
Current costs added to complete
beginning WIP inventory	52200
Prior department		0
Department T ($5.20 x 6,960 units)			52200.0
Current costs of units started and completed:	205740
Prior department ($7.20 x 16200)		84240
Department T ($7.50 x 16200)			121500
Total costs transferred out	310658	126620	184038.0
Cost of ending WIP inventory	35890
Prior department ($7.20 x 3700)		19240
Department T ($7.50 x 2,220)			16650
Total costs accounted for	3,46,548	145860	200688