ound solutions to part (1), part (2), and part (3). SOLUTION REQUIRED: PART (4) - Prepare a March cost reconciliation report for the Drying department for Ma

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
icon
Concept explainers
Topic Video
Question
100%

I found solutions to part (1), part (2), and part (3).

SOLUTION REQUIRED: PART (4) - Prepare a March cost reconciliation report for the Drying department for March.

Units
5,000
8,000
Percent Completed
Pulping Conversion
100%
20%
100%
25%
Work in process inventory, March 1....
Work in process inventory, March 31
$500
Pulping cost in ork in process inventory, March 1......
Units transferred to the next production department
157,000
Pulping cost added during March.....
Conversion cost added during March.
$102,450
$31,300
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. Determine the equivalent units for March for pulping and conversion.
2.
Compute the costs per equivalent unit for March for pulping and conversion.
3.
Determine the total cost of ending work in process inventory and the total cost of units trans-
ferred to the Finishing Department in March.
4. Prepare a cost reconciliation report for the Drying Department for March.
Transcribed Image Text:Units 5,000 8,000 Percent Completed Pulping Conversion 100% 20% 100% 25% Work in process inventory, March 1.... Work in process inventory, March 31 $500 Pulping cost in ork in process inventory, March 1...... Units transferred to the next production department 157,000 Pulping cost added during March..... Conversion cost added during March. $102,450 $31,300 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. Determine the equivalent units for March for pulping and conversion. 2. Compute the costs per equivalent unit for March for pulping and conversion. 3. Determine the total cost of ending work in process inventory and the total cost of units trans- ferred to the Finishing Department in March. 4. Prepare a cost reconciliation report for the Drying Department for March.
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Costing Systems
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education