Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Exercise 4-11 (Algo) Comprehensive Exercise; Second Production Department-Weighted-Average Method [LO4-2, LO4-3, LO4-4, LO4-5] Scribners Corporation produces fine papers in three production departments-Pulping, Drying, and Finishing.

image text in transcribed
Exercise 4-11 (Algo) Comprehensive Exercise; Second Production Department-Weighted-Average Method [LO4-2, LO4-3, LO4-4, LO4-5] 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 Units Pulping Conversion Work in process inventory, March 1 3, 100 1008 80% Work in process inventory, March 31 5 , 600 1008 758 Pulping cost in work in process inventory, March 1 $ 1, 581 Conversion cost in work in process inventory, March 1 $ 1, 023 Units transferred to the next production department 157, 100 Pulping cost added during March $ 84, 650 Conversion cost added during March $ 58 , 658 ices 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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting Fundamentals

Authors: John Wild

7th Edition

1260247864, 9781260247862

More Books

Students also viewed these Accounting questions

Question

The quality of the proposed ideas

Answered: 1 week ago

Question

The number of new ideas that emerge

Answered: 1 week ago