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.
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
![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
Pulping
100%
Units
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
80%
3,100
5,600
100%
75%
2$
1,581
$
1,023
157,100
$ 84,650
$ 58,658
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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fcdfab4a7-28d0-498e-bd8c-96d47e385f7f%2Feef611b5-cec4-4420-9590-f54f6bf2bcab%2Ff1ffxsgl_processed.jpeg&w=3840&q=75)
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