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	2,900	100	%			80	%
Work in process inventory, March 31	8,400	100	%			75	%
Pulping cost in work in process inventory, March 1				$	1,189
Conversion cost in work in process inventory, March 1				$	667
Units transferred to the next production department					143,400
Pulping cost added during March				$	64,085
Conversion cost added during March				$	39,752

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.

Required:
1.	a Determine the equivalent units for March for pulping and conversion.

  

	Pulping Conversion Equivalent units of production

              

b	Compute the costs per equivalent unit for March for pulping and conversion. (Round your answers to 2 decimal places.)

  

	Pulping Conversion Cost per equivalent unit

     

c

Determine the total cost of ending work in process inventory and the total cost of units transferred to the Finishing Department in March. (Round your intermediate calculations to 2 decimal places and your final answers to the nearest whole dollar.) Total Cost of ending work in process inventory Cost of units completed and transferred out

  

  

d	Prepare a cost reconciliation report for the Drying Department for March. (Round your intermediate calculations to 2 decimal places and your final answers to the nearest whole dollar.)

  

	Drying Department Cost Reconciliation Costs to be accounted for: Total cost to be accounted for $0 Costs accounted for as follows: Total cost accounted for $0

Answer 1

1)	Equivalent units of production
					units	%	pulping	%	CC
	Completed & transferred				143,400	100%	143,400	100%	143,400
	work in process inventory,March 31				8,400	100%	8,400	75%	6300
	Equivalent units of production						151,800		149,700
2)	cost per Equivalent units
						pulping	CC	total
	Beginning work in process					1,189	667	1,856
	cost added during the year					64,085	39,752	103,837
	total cost					65,274	40,419	105,693
	equivalent units					151,800	149,700
	cost per EUP					0.43	0.27	0.7
3)	Cost of ending work in proces
	pulping		8,400	*.43		3612
	Conversion		6300	*.27		1701
	Cost of ending work in proces							5313
4)	Cost of units transferred
	pulping		143,400	*.43		61662
	conversion		143,400	*.27		38718		100380
5)	CostReconcilation report
	cost to be accounted
	Beginning work in process					1,856
	cost added during the year					103,837
	cost to be accounted					105,693
	cost accounted for
	transferred cost					100,380
	ending wip cost					5313
	cost accounted for					105,693