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 ((9,400 units, 20% complete with respect to Department T costs)
Transferred-in costs (from Department S)	$	52,390
Department T conversion costs		11,206
Current work (21,300 units started)
Prior department costs		125,670
Department T costs		202,950

The ending inventory has 4,400 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

Statement of Equivalent production
Particulars	Prior Deptt	%completion	Equivalent Prior deptt	Conversion	%completion	Equivalent Conv	Total Costs
Opening WIP	9,400.00	100%	9,400.00	9,400.00	100%	9,400.00
Units started and completed = 21300-4400	16,900.00	100%	16,900.00	16,900.00	100%	16,900.00
ending WIP	4,400.00	100%	4,400.00	4,400.00	60%	2,640.00
Equivalent Units			30,700.00			28,940.00
Opening WIP Costs			52,390.00			11,206.00	63,596.00
Current Month Costs			125,670.00			202,950.00	328,620.00
Total costs			178,060.00			214,156.00	392,216.00
Cost per Equivalent units			5.80			7.40
Ending WIP Units			4,400.00			2,640.00
Cost of Ending WIP			25,520.00			19,536.00	45,056.00
Units completed and transferred out			26,300.00			26,300.00
Cost of Units completed and transferred out			152,540.00			194,620.00	347,160.00
Coststo Account for:
Opening WIP	63,596.00
CostsTransferred in	328,620.00
Total Coststo Account for	392,216.00
CostsAccounted for
Costscompleted and Transferred Out	347,160.00
Ending WIP	45,056.00
Total Costsaccounted for	392,216.00