Papyrutech Corporation produces fine papers in three production departments—Pulp
ID: 2427105 • Letter: P
Question
Papyrutech 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 on 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 October for the Drying Department follow:
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.
Compute the costs per equivalent unit for October for pulping and conversion. (Round your answers to 2 decimal places.)
Determine the total cost of ending work in process inventory and the total cost of units transferred to the Finishing Department in October. (Round your costs per equivalent unit to 2 decimal places and final answers to the nearest dollar amount.)
Papyrutech 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 on 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 October for the Drying Department follow:
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. Determine the equivalent units for October for pulping and conversion. Pulping Conversion Equivalent units of production 2.Compute the costs per equivalent unit for October for pulping and conversion. (Round your answers to 2 decimal places.)
Pulping Conversion Cost per equivalent unit $ $ 3.Determine the total cost of ending work in process inventory and the total cost of units transferred to the Finishing Department in October. (Round your costs per equivalent unit to 2 decimal places and final answers to the nearest dollar amount.)
Pulping Conversion Total Cost of ending work in process inventory $ $ $ Cost of units completed and transferred out $ $ $ 4. Prepare a cost reconciliation report for the Drying Department for October. (Round your final answers to the nearest dollar amount.) Cost Reconciliation Costs to be accounted for: (Click to select)Cost of ending work in process inventoryCost of beginning work in process inventoryCost of units completed and transferred out $ (Click to select)Cost of ending work in process inventoryCost of units completed and transferred outCosts added to production during the period Total cost to be accounted for $ Costs accounted for as follows: (Click to select)Cost of ending work in process inventoryCost of beginning work in process inventoryCosts added to production during the period $ (Click to select)Cost of beginning work in process inventoryCost of units completed and transferred outCosts added to production during the period Total cost accounted for $ Percent Completed Work in process inventory, October 1 Work in process inventory, October 31 Units Pulping 2,800 100% 6,000 100% Conversion 80% 75% Pulping cost in work in process inventory, October 1 Conversion cost in work in process inventory, October 1 Units transferred to the next production department Pulping cost added during October Conversion cost added during October $ 1,470 $980 158,000 $ 88,730 $ 62,395Explanation / Answer
a.
Pulping
Conversion
Transferred to next department
158,000
158,000
Ending work in process
Pulping: 6000 units * 100%
6,000
Conversion: 6000 units * 75%
4,500
Equivalents units of production
164,000
162,500
b.
Pulping
Conversion
Cost of beginning work in process
$ 1,470.00
$ 980.00
Cost added during the period
$ 88,730.00
$ 62,395.00
Total cost
$ 90,200.00
$ 63,375.00
Equivalents units of production
164,000
162,500
Cost per equivalent unit of prouction
$0.55
$0.39
c.
Pulping
Conversion
Total
Ending work in process inventory
Equivalents units of production
6,000
4,500
Cost per equivalent unit
$ 0.55
$ 0.39
Cost of ending work in process inventory
$ 3,300.00
$ 1,755.00
$ 5,055.00
Units completed and transferred out
Units transferred to next department
158,000
158,000
Cost per equivalent unit
$ 0.55
$ 0.39
Cost of units completed and transferred out
$ 86,900.00
$ 61,620.00
$ 148,520.00
Pulping
Conversion
Transferred to next department
158,000
158,000
Ending work in process
Pulping: 6000 units * 100%
6,000
Conversion: 6000 units * 75%
4,500
Equivalents units of production
164,000
162,500
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