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 (9,300 units, 30% complete with respect to Department T costs)
Transferred-in costs (from Department S)	$	50,900
Department T conversion costs		20,890
Current work (21,100 units started)
Prior department costs		122,380
Department T costs		216,410

The ending inventory has 4,300 units, which are 50 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

Answer:

Cost report is the step 4

STEP 1
Reconciliation of Units
	Units	% already completed		% completed this period
		Department S	Department T	Department S	Department T
Beginning WIP	9300	100%	30%	0%	70%
Units introduced	21100
Total units to be accounted for	30400
Completed and Transferred unit	26100	0%	0%	100%	100%
Ending WIP	4300	0%	0%	100%	50%

STEP 2
Equivalent Units
	Total Units	Department S		Department T
Units Transferred:		% completed this period	Equivalent Units	% completed this period	Equivalent Units
From WIP	9300	0%	-	70%	6510
From units started/Introduced	16800	100%	16800	100%	16800
Total	26100		16800		23310
	Total Units	Department S		Department T
Ending WIP		% completed this period	Equivalent Units	% completed this period	Equivalent Units
Total	4300	100%	4300	50%	2150
Total EUP	30400		21100		25460

STEP 3
Cost per Equivalent Units AND Cost to be accounted for
	Department S		Department T		TOTAL
Cost incurred in Current Period	$                            122380		$                         216410		$          338790
Total Equivalent Units	$                            21100		$                            26100
Cost per Equivalent Units	$                                       5.8		$                                       8.29
Cost of Beginning WIP	$                            50900		$                            20890		$             71790
Total cost to be accounted for					$          410580

STEP 4
Cost report [Including Reconciliation]
	Cost of	Units Transferred		26100	units
		Equivalent Units [Step 2]	Cost per Equivalent Units [Step 3]	Cost of Units Transferred	TOTAL
A	From Beginning WIP:
	Department S	-	$        5.8	$                     -
	Department T	6510	$ 8.29	$      53967.9	$             53967.9
B	From units started & completed
	Department S	16800	$        5.8	$      97440
	Department T	16800	$        8.29	$ 139272	$          236712
C=A+B	Total				$          290679.9
D	Cost of Beginning WIP				$             71790
E=C+D	Total Cost of Units transferred				$          362469.9
	Cost of	Ending WIP		4300	units
		Equivalent Units [Step 2]	Cost per Equivalent Units [Step 3]	Cost of Ending WIP	TOTAL
F	Department S	4300	$        5.8	$      24940
G	Department T	2150	$        8.29	$      17823.5
H = F + G	Total Cost of Ending WIP				$             42763.5
I = E + H	Total Cost accounted for				$          405233.4
J	Rounding Off Differences				$                             -
K = I + J	Total cost to be accounted for [equals to computed in STEP 3]				$          405233.4