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, rew materials such as wood fiber and rag conion 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 web, pressed to remove excess liquid, and dried in oven·In the Finishing Depament, the dred paper is cored at and spooied onto rees. The company uses the weighted-average method in its process costing system. Data for March for the Drying Mork in process inventory, Harch 1 Work in process inventory, March 31 Pulping cost in work in process inventory, March 3,300 100% 7,580 100% se% sex s 1,155 S 561 157,800 s 60,006 Conversion cost in work in process inventory, March 1 Units transferred to the next production Pulping cost added during March Conversion cost added during March 33,837 No mateniais are added n the Drying Department Pulping cost represents the costs of the wet fibers transfered in from the Pulping Depatment. Wet fiber s processed in the Drying Department in batches, eech unit in the above table is a batch and one batch of wet bers proouces set anoct of dred paper theis pessed on to the Frish ng Department L Compute the Drying Depertment's equivalent anits of production for puiping and convension in March 2 Compute the Drying Departments cost per eculieient unit for puiping and conversion in Maren 3 Compuze the Deying Depatments cost of ending work in process inventory for pulping conversion, and in total for March ComOutt me Drying Department cost er units transfered oeto the Friping Depotmet for pupng conversen rnd itot' in Preparc cost reconcilation "eeert for the Drying Deparment tor Mren Complete this question by entering your answers in the tabs below.

Explanation / Answer

UNITS TO ACCOUNT FOR: Beginning Work in Process units 3,300 Add: Units Started in Process 162,000 Total Units to account for: 165,300 UNITS TO BE ACCOUNTED FOR: Units started and completed 157,800 Ending Work in Process 7,500 Total Units to be accounted for: 165,300 REQ1: Equivalent Units: Pulping cost Conversion % Completion Units % Completion Units Units started and completed 100% 157,800 100% 157,800 Ending Work in Process 100% 7,500 80% 6,000 Total Equivalent units 165,300 163,800 REQ2 TOTAL COST TO ACCOUNT FOR: Pulping Conversion Beginning work in Process 1,155 561 Cost Added during May 60,006 33,837 Total Cost to account for: 61,161 34,398 Total Cost to account for: 95,559 COST PER EQUIVALENT UNIT: Material Conversion Total cost added during the year 61,161 34,398 Equivalent Units 165,300 163,800 Cost per Equivalent unit 0.37 0.21 REQ: 3 &4 TOTAL COST ACCOUNTED FOR: Units started and Transferred out (157800 units) Equivalent unit Cost per EU Total Cost Material 157,800 0.37 58386 Conversion Cost 157,800 0.21 33138 Total Cost of Units completed and transferred out: 91524 Ending Work in process (7500 units) Equivalent unit Cost per EU Total Cost Material 7,500 0.37 2775 Conversison Cost 6,000 0.21 1260 Total cost of Ending Work in process: 4,035 REQ 5: RECONCILIATION STATEMENT TOTAL COST TO ACCOUNT FOR: Material Conversion Beginning work in Process 1,155 561 Cost Added during May 60,006 33,837 Total Cost to account for: 61,161 34,398 Total Cost to account for: 95,559 TOTAL COST ACCOUNTED FOR: Cost of Units completed (157800 units) 91,524 Cost of Ending Work in process (7500 units) 4035 Total cost accounted for: 95559 Difference (Total cost to account for-Total cost accounted) Nil

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