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 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 March for the Drying Department follow:

Percent Completed

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 March 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 March. (Round your intermediate calculations to 2 decimal places.)

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 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 March for the Drying Department follow:

Explanation / Answer

Units % Equivalent Units % Work in process inventory, March 1 3300 100                        2,640 80 Work in process inventory, March 31 7500 100                        6,000 80                        8,640 Cost per equivalent unit = total costs ÷ number of units Cost Opening cost Pulping cost 1155 coversion cost 561 Cost added during month Pulping cost 60006 coversion cost 33837 95559 Equivalent Units 8640 Total Cost per equivalent unit 11.06

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.