6 2, LUO-5, LV5-4, LVO-9)
10
points
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:
Skipped
oBook
Units
3,600
7,700
Ask
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
Percent Completed
Pulping Conversion
100%
BOX
100%
70%
$ 1,584
$ 936
148,309
$ 70,176
$ 45,171
Print
No materials are added in the Drying Department. Pulping cost represents the costs of the wet fibers transferred in from the Purple
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
MC
Graw
Hill
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