Compute equivalent production and cost per equivalent production

for prior department costs when there are normal losses.

(Obj. 2). On March 1, 19X9, the beginning work in process inventory

for the Laminating Department of the Istanbul Company was 1 00

units. The prior department costs for these units were $1,000. During

the month, 2,400 units with prior department costs of $26,375

were transferred into the Laminating Department, and 2,300 units

were completed and transferred to the next department. The ending

work in process inventory was 150 units, and 50 units were lost in

production.

a. Compute the equivalent production for prior department costs.
b. Compute the cost per equivalent unit for prior department costs.
c. Show how the Costs in Prior Department section of Costs to Be
Accounted For would appear in the cost of production report for
March, assuming that there is a separate adjustment for lost units.
d. Compute the Costs in Prior Department to be included in the ending
inventory of work in process in the Laminating Department. LO.1