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 ((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 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

UNITS TO ACCOUNT FOR:
Beginning Work in Process units			9,400
Add: Units Started in Process			21,300
Total Units to account for:			30,700
UNITS TO BE ACCOUNTED FOR:
Units completed				26300
Ending Work in Process			4,400
Total Units to be accounted for:		30,700
Equivalent Units:
			UNITS	Transferred in cost	Deptt T cost
				% Completion	Units	% Completion	Units
Units completed		26300	100%	26,300	100%	26,300
Ending Work in Process	4400	100%	4,400	60%	2,640
Total Equivalent units	30700		30,700		28,940
TOTAL COST TO ACCOUNT FOR:
				Transferrd in		Deptt T
cost of Beginning WIP		52390		11206
Cost Added during May		1,25,670		2,02,950
Total Cost to account for:		1,78,060		2,14,156
Equivalent Units			30,700		28,940
Cost per Equivalent unit		5.8		7.4
TOTAL COST ACCOUNTED FOR:
Units completed and Transferred out (26300 units)
				Equivalent unit	Cost per EU	Total Cost
Transfrred in cost			26,300	5.8	152540
Deptt T cost			26,300	7.4	194620
Total cost of Units completed and transferred out		347160
Ending Work in process (4400 units)
				Equivalent unit	Cost per EU	Total Cost
Transfrred in cost			4,400	5.8	25520
Deptt T cost			2,640	7.4	19536
Total cost of Ending Work in process:			45,056