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 (8,200 units, 20% complete with respect to Department T costs)
Transferred-in costs (from Department S)	$	35,830
Department T conversion costs		8,930
Current work (18,900 units started)
Prior department costs		88,830
Department T costs		167,020

The ending inventory has 3,200 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.)

Physical Units Equivalent Units Prior Department Department T Flow of units: Units to be accounted for: Beginning WIP inventory Units started this period Total units to account for Units accounted for: Completed and transferred out From beginning WIP inventory Prior department Department T Started and completed currently Units in ending WIP inventory Prior department Department T Total units accounted for

Total Prior Department Department T Flow of costs: Costs to be accounted for: Costs in beginning WIP inventory Current period costs Total costs to be accounted for Cost per equivalent unit Prior department Department T Costs accounted for: Costs assigned to units transferred out: Costs from beginning WIP inventory Current costs added to complete beginning WIP inventory Prior department Department T Current costs of units started and completed: Prior department Department T Total costs transferred out Cost of ending WIP inventory Prior department Department T Total costs accounted for

Answer 1

	Physical Units	Prior Department	Department T
Flow of Units:
Units to be accounted for:
Beginning WIP inventory	8,200
Units started this period	18,900
Total Units to account for	27,100
Units accounted for:
Completed & Transferred out
From Beginning WIP Inventory	8,200
Prior Department		-
Department T			6,560
Started & Completed currently	15,700	15,700	15,700
Units in Ending WIP Inventory	3,200
Prior Department		3,200
Department T			1,600
Total units accounted for	27,100	18,900	23,860

	TOTAL	Prior Department	Department T
Flow of Costs:
Cost of be accounted for:
Costs in beginning WIP Inventory	$                       44,760.00	$                   35,830.00	$            8,930.00
Current Period Costs	$                     255,850.00	$                   88,830.00	$       167,020.00
Total Cost to be accounted for	$                     300,610.00	$                 124,660.00	$       175,950.00
Cost per Equivalent units
Prior Department		$                              4.70
Department T			$                    7.00
Costs accounted for:
Costs assigned to units transferred out:
Costs from beginning WIP Inventory	$                       44,760.00	$                   35,830.00	$            8,930.00
Current Costs added to complete beginning WIP Inventory	$                       45,920.00
Prior Department		$                                   -
Department T			$          45,920.00
Current Costs of units started and completed:	$                     183,690.00
Prior Department		$                  73,790.00
Department T			$       109,900.00
Total cost transferred out	$                     274,370.00	$                 109,620.00	$       164,750.00
Cost of ending WIP Inventory	$                       26,240.00
Prior Department		$                   15,040.00
Department T			$          11,200.00
Total costs accounted for	$                     300,610.00	$                 124,660.00	$       175,950.00