Scribners Corporation produces fine papers in three production departments-Pulpi

Question

Scribners Corporation produces fine papers in three production departments-Pulping, Drying, and Finishing. In the Pulping Department, raw materials such as wood fiber and rag cotton are mechanically and chemically treated to separate their fibers. The result is a thick slurry of fibers. In the Drying Department, the wet fibers transferred from the Pulping Department are laid down orn porous webs, pressed to remove excess liquid, and dried in ovens. In the Finishing Department, the dried paper is coated, cut, and spooled onto reels. The company uses the weighted-average method in its process costing system. Data for March for the Drying Department follow: Percent Completed Units Pulping 3,800 7,500 Conversion Work in process inventory, March 1 Work in process inventory, March 31 Pulping cost in work in process inventory, March 1 Conversion cost in work in process inventory, March 1 Units transferred to the next production department Pulping cost added during March Conversion cost added during March 100% 100% 80% 75 % $1,729 $1,064 150,800 $74,255 48,992 No materials are added in the Drying Department. Pulping cost represents the costs of the wet fibers transferred in from the Pulping Department. Wet fiber is processed in the Drying Department in batches, each unit in the above table is a batch and one batch of wet fibers produces a set amount of dried paper that is passed on to the Finishing Department. Required: 1. Compute the Drying Department's equivalent units of production for pulping and conversion in March 2. Compute the Drying Department's cost per equivalent unit for pulping and conversion in March. 3. Compute the Drying Department's cost of ending work in process inventory for pulping, conversion, and in total for March 4. Compute the Drying Department's cost of units transferred out to the Finishing Department for pulping, conversion, and in total in March 5. Prepare a cost reconciliation report for the Drying Department for March

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1. Quantities Equivalent Units Whole Units Materials Conversion Cost Units to be account for Work in Process, Beginning 100%, 80% 3800 add:Started into production 154500 -Total Units 158300 Units accounted for Transferred out 150800 150800 150800 Work in Process, Ending 100%, 75% 7500 7500 5625 100% 75% Equivalent Units-Weighted Average 158300 158300 156425 2 Cost Materials Convsersion Cost Total Work in Process, Beginning 1729 1064 2793 add:Started into production 74255 48992 123247 Total Cost to account for 75984 50056 126040 Equivalent Units 158300 156425 Unit Cost Total Cost/Equivalent Units 0.48 0.32 0.80 3. Cost accounted for Work in Process, Ending Material Conversion Total Equivalent Units 7500 5625 Cost per Equivalent Unit 0.48 0.32 -Total Cost Accounted For 3600 1800 5400 4. Unit Completed and transferred out Equivalent Units 150800 150800 Cost per Equivalent Unit 0.48 0.32 -Total Cost Accounted For 72384 48256 120640 5. Reconcilliation Cost to be accounted for: Cost of beginning work in process 2793 Cost added to production during period 123247 Total Cost to be accounted for 126040 Cost accounted for as follows: Cost of ending work in process 5400 Cost of units transferred out 120640 Total Cost accounted for 126040

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