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 ((8,300 units, 20% complete with respect to Department T costs)

Transferred-in costs (from Department S) $37,100

Department T conversion costs $9,842

Current work (19,100 units started)

Prior department costs $91,680

Department T costs $183,150

The ending inventory has 3,300 units, which are 60 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.)

Answer 1

ANSWER

Step for solution
Step 1	Equivalent Units of production = Physical units multiplied by % of competition
Step 2	Calculate total cost to be accounted for
Step 3	Cost per Equivalent Unit = total cost to be accounted for / Equivalent Units of production
Step 4	Cost assigned to units transferred out = units completed and transferred out * Cost per Equivalent Unit
Step 5	Cost assigned to units ending work in progress = equivalent units in ending WIP inventory * Cost per Equivalent Unit

Lansing INC
T Department production Report
Weighted average Method
Month ended June
Summary of Physical units
Units in beginning WIP inventory			8300
Units started during month			19100
Total unit to be accounted for			27400
Units completed and transferred out (27400-3300)			24100
Units in ending WIP inventory			3300
Total unit accounted for			27400
Equivalent Units of production
Particulars	Physical units	Prior department		Conversion Cost
		%	Units	%	Units
Units in beginning WIP inventory	8300	100%	8300	100%	8300
Units in Started and completed (24100-8300)	15800	100%	15800	100%	15800
Units in ending WIP inventory	3300	100%	3300	60%	1980
Equivalent Units of production			27400		26080
Summary of cost to be accounted
	Prior department	Conversion Cost	Total
Cost in beginning WIP	37100	9842	46942
Cost incurred during Month (Add)	91680	183150	274830
Total cost to be accounted for	128780	192992	321772
Cost per Equivalent Unit
Total cost to be accounted for	128780	192992
Equivalent Units of production	27400	26080
Cost per Equivalent Unit	4.70	7.40	12.10
Assign costs to units transferred out and units in ending WIP inventory
Cost assigned to units transferred out
Units completed and transferred out	24100	24100
Cost per Equivalent Unit	4.7	7.4
Cost assigned to units transferred out	113270	178340	291610
Cost assigned to units ending work in progress
Equivalent units in ending WIP inventory	3300	1980
Cost per Equivalent Unit	4.7	7.4
Cost assigned to units ending work in progress	15510	14652	30162
Total cost assigned			321772

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