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 (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 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.)

	Physical Units Equivalent Units Prior Department Department T Flow of units: Units to be accounted for: Beginning WIP inventory 15,000 Units started this period 35,000 Total units to account for 50,000 Units accounted for: Completed and transferred out Units in ending inventory Prior department Department T Total units accounted for 0 0 0

	Total Prior Department Department T Flow of costs: Costs to be accounted for: Costs in beginning WIP inventory Current period costs Total costs to be accounted for $0 $0 $0 Cost per equivalent unit Prior department Department T Costs accounted for: Costs assigned to units transferred out Costs of ending WIP inventory Total costs accounted for $0 $0 $0

Answer 1

• All working forms part of the answer and are given after Answer
• Requirement completed below:

		Equivalent Units
	Physical Units	Prior Department	Department T
Flow of units:
Units to be accounted for:
Beginning WIP inventory	15,000
Units started this period	35,000
Total units to account for	50,000
Units accounted for:
Completed and transferred out	45,000	45,000	45,000
Units in ending inventory	5,000
Prior department		5,000
Department T			1,000
Total units accounted for	50,000	50,000	46,000

	Total	Prior Department	Department T
Flow of costs:
Costs to be accounted for:
Costs in beginning WIP inventory	$ 169,150.00	$ 116,000.00	$    53,150.00
Current period costs	$ 489,050.00	$ 280,000.00	$ 209,050.00
Total costs to be accounted for	$ 658,200.00	$ 396,000.00	$ 262,200.00
Cost per equivalent unit
Prior department		$               7.92
Department T			$               5.70
Costs accounted for:
Costs assigned to units transferred out	$ 612,900.00	$ 356,400.00	$ 256,500.00
Costs of ending WIP inventory	$    45,300.00	$    39,600.00	$      5,700.00
Total costs accounted for	$ 658,200.00	$ 396,000.00	$ 262,200.00

• Workings

EUP - Weighted Average Method	Units	% Material	EUP Materials	% Conversion	EUP - Conversion
Units TRANSFERRED	45,000	100%	45,000	100%	45,000
Units of ENDING WIP	5,000	100%	5,000	20%	1,000
Equivalent Units of Production			50,000		46,000

Cost of Units Transferred Out	EUP	Cost per EUP	Total Cost
- Direct Materials	45,000	$                      7.92	$        356,400.00
- Conversion	45,000	$                      5.70	$        256,500.00
Total Cost transferred Out				$            612,900.00

Cost of ending WIP	EUP	Cost per EUP	Total Cost
- Direct Materials	5,000	$                      7.92	$          39,600.00
- Conversion	1,000	$                      5.70	$             5,700.00
Total cost of ending WIP				$              45,300.00