Lansing, Inc. provides the following information for one of its department’s operations for June (no new material is added in Department T): WIP inventory—Department T Beginning inventory ((8,400 units, 20% complete with respect to Department T costs) Transferred-in costs (from Department S) $ 38,390 Department T conversion costs 7,480 Current work (19,300 units started) Prior department costs 94,570 Department T costs 145,920 The ending inventory has 3,400 units, which are 50 percent complete with respect to Department T costs and 100 percent complete for prior department costs. Required: a. Complete the production cost report using the weighted-average method. (Round "Cost per equivalent unit" to 2 decimal places.)
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
Lansing, Inc. provides the following information for one of its department’s operations for June (no new material is added in Department T):
| WIP inventory—Department T | ||
| Beginning inventory ((8,400 units, 20% complete with respect to Department T costs) | ||
| Transferred-in costs (from Department S) | $ | 38,390 |
| Department T conversion costs | 7,480 | |
| Current work (19,300 units started) | ||
| Prior department costs | 94,570 | |
| Department T costs | 145,920 | |
|
|
The ending inventory has 3,400 units, which are 50 percent complete with respect to Department T costs and 100 percent complete for prior department costs.
Required:
a. Complete the production cost report using the weighted-average method. (Round "Cost per equivalent unit" to 2 decimal places.)
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