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

• All Working forms part of the answer

Costs Charged to Production:
Cost of beginning WIP	$                       71,790.00
Costs incurred this period	$                     338,790.00
Total Cost to account for	$                     410,580.00
Total costs accounted for	$                     410,580.00
Difference due to rounding cost/unit	$                                      -

Units Reconciliation
Units to account for:
Beginning WIP	9,300
Units started this period	21,100
Total Units to account for	30,400
Total Units accounted for:
Completed & Transferred out	26,100
Ending WIP	4,300
Total Units accounted for	30,400

EUP - FIFO Method	Units	% Transferred in	EUP Transferred in (Dept S)	% Conversion	EUP – Conversion (Dept T)
Units of ENDING WIP	4,300	100%	4,300	50%	2,150
Units STARTED & COMPLETED	16,800	100%	16,800	100%	16,800
Units of beginning WIP	9,300	0%	-	70%	6,510
Equivalent Units of Production			21,100		25,460

COST per EUP			Transferred in (Dept S)		Conversion
Cost incurred this period			$       122,380.00		$                  216,410.00
Total Costs		Costs	$       122,380.00	Costs	$                  216,410.00
Equivalent units of production		EUP	21,100	EUP	25,460
Cost per EUP			$             5.80		$                        8.50

COST ASSIGNMENT & RECONCILIATION
Cost Transferred out:	EUP	Cost per EUP	Total Cost
Cost of Beginning WIP			$          71,790.00
Cost to complete beginning WIP-
- Cost transferred in from Dept S	-	$                   5.80	$                         -
- Conversion	6,510	$                   8.50	$          55,335.00
Total cost to complete beginning WIP			$       127,125.00
Cost of Units started & completed this period:	EUP	Cost per EUP	Total Cost
- Cost transferred in from Dept S	16,800	$                   5.80	$          97,440.00
- Conversion	16,800	$                   8.50	$       142,800.00
Total costs started & Completed this period			$       240,240.00
Total cost of work finished this period				$      367,365.00
Costs of Ending WIP:	EUP	Cost per EUP	Total Cost
- Direct Materials	4,300	$                   5.80	$          24,940.00
- Conversion	2,150	$                   8.50	$          18,275.00
Total cost of ending WIP				$         43,215.00
Total costs accounted for				$      410,580.00