Question

Scribners Corporation produces fine papers in three production departments—Pulping, Drying, and Finishing. In the Pulping Department, raw materials such as wood fiber and rag cotton are mechanically and chemically treated to separate their fibers. The result is a thick slurry of fibers. In the Drying Department, the wet fibers transferred from the Pulping Department are laid down on porous webs, pressed to remove excess liquid, and dried in ovens. In the Finishing Department, the dried paper is coated, cut, and spooled onto reels. The company uses the weighted-average method in its process costing system. Data for March for the Drying Department follow:

                                                                           Percent Completed

                                                                                                Units                      Pulping                 Conversion

Work in process inventory, March 1                                     4,100                       100 %                         80 %

Work in process inventory, March 31                                     8,000                       100 %                        75 %

Pulping cost in work in process inventory, March 1                                                                   $ 1,517

Conversion cost in work in process inventory, March 1 $                                                           $779                                                    

Units transferred to the next production department                                                               140,300                                                  Pulping cost added during March                                                                                             $ 56,320                                            Conversion cost added during March                                                                                       $ 32,870

No materials are added in the Drying Department. Pulping cost represents the costs of the wet fibers transferred in from the Pulping Department. Wet fiber is processed in the Drying Department in batches; each unit in the above table is a batch and one batch of wet fibers produces a set amount of dried paper that is passed on to the Finishing Department.

1. Compute the Drying Department's equivalent units of production for pulping and conversion in March.

                Equivalent units of production

2. Compute the Drying Department's cost per equivalent unit for pulping and conversion in March.

                  Cost per equivalent unit

3. Compute the Drying Department's cost of ending work in process inventory for pulping, conversion, and in total for March.

                   Cost ending work in process inventory

4. Compute the Drying Department's cost of units transferred out to the Finishing Department for pulping, conversion, and in total in March.

                    Cost of units complted and transfered

5. Prepare a cost reconciliation report for the Drying Department for March.

                    

Please provide details as to how you came up with the answer and not just document the answer. Please and thank you.

Answer 1

1	Equivalent units of production
		Pulping	Conversion
	Transferred to next department	140,300	140,300
	Ending work in process:
	Pulping: 8,000 units x 100% complete	8,000
	Conversion: 8,000 units x 75% complete		6,000
	Equivalent units of production	148,300	146,300
2	Cost per equivalent unit
		Pulping	Conversion
	Cost of beginning work in process	$1,517	$779
	Cost added during the period	56,320	32,870
	Total cost (a)	$57,837	$33,649
	Equivalent units of production (b)	148,300	146,300
	Cost per equivalent unit, (a) ÷ (b)	$0.39	$0.23
3		Pulping	Conversion	Total
	Ending work in process inventory:
	Equivalent units of production	8,000	6,000
	x Cost per equivalent unit	$0.39	$0.23
	Cost of ending work in process inventory	$3,120	$1,380	$4,500
4		Pulping	Conversion	Total
	Units completed and transferred out:
	Units transferred to the next department	140,300	140,300
	x Cost per equivalent unit	$0.39	$0.23
	Cost of units completed and transferred out	$54,717	$32,269	$86,986
5	Cost reconciliation
	Costs to be accounted for:
	Cost of beginning work in process inventory
	($1,517 + $779)	$        2,296
	Costs added to production during the period
	($56,320 + $32,870)	89,190
	Total cost to be accounted for	$      91,486
	Costs accounted for as follows:
	Cost of ending work in process inventory	$        4,500
	Cost of units completed and transferred out	86,986
	Total cost accounted for	$      91,486

Note: I have tried my best for correct and fully explained solution, still need any further help, please ask in comment, Thank You.