Scribners Corporation produces fine papers in three producti

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

Solution

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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