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 (9,200 units, 20% complete with respect to Department T costs)

Transferred-in costs (from Department S) $49,430

Department T conversion costs $13,760

Current work (20,900 units started)

Prior department costs $119,130

Department T costs $235,440

The ending inventory has 4,200 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

	Physical Units	Prior Department	Department T
Flow of Units:
Units to be accounted for:
Beginning WIP inventory	9,200
Units started this period	20,900
Total Units to account for	30,100
Units accounted for:
Completed & Transferred out
From Beginning WIP Inventory	9,200
Prior Department		-
Department T [9200 x 80%]			7,360
Started & Completed currently	16,700	16,700	16,700
Units in Ending WIP Inventory	4,200
Prior Department		4,200
Department T [4200 x 50%]			2,100
Total units accounted for	30,100	20,900	26,160

	TOTAL	Prior Department	Department T
Flow of Costs:
Cost of be accounted for:
Costs in beginning WIP Inventory	$                       63,190.00	$                   49,430.00	$          13,760.00
Current Period Costs	$                     354,570.00	$                 119,130.00	$       235,440.00
Total Cost to be accounted for	$                     417,760.00	$                 168,560.00	$       249,200.00
Cost per Equivalent units
Prior Department [119130 / 20900 units]		$                              5.70
Department T [$235440 / 26160 units]			$                    9.00
Costs accounted for:
Costs assigned to units transferred out:
Costs from beginning WIP Inventory	$                       63,190.00	$                   49,430.00	$          13,760.00
Current Costs added to complete beginning WIP Inventory	$                       66,240.00
Prior Department		$                                   -
Department T			$          66,240.00
Current Costs of units started and completed:	$                     245,490.00
Prior Department		$                   95,190.00
Department T			$       150,300.00
Total cost transferred out	$                     374,920.00	$                 144,620.00	$       230,300.00
Cost of ending WIP Inventory	$                       42,840.00
Prior Department		$                   23,940.00
Department T			$          18,900.00
Total costs accounted for	$                     417,760.00	$                 168,560.00	$       249,200.00