spooled onto reels. The company uses the weighted-average method in its process costing system. Data for March for the Drying Department follow: 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 Required: For March: Complete this question by entering your answers in the tabs below. Units 3,200 8,000 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 Required 2 Required 3 Required 4 Required 5 Cost per equivalent unit 1. Compute the Drying Department's equivalent units of production for pulping and conversion. 2. Compute the Drying Department's cost per equivalent unit for pulping and conversion. 3. Compute the Drying Department's cost of ending work in process inventory for pulping, conversion, and in total. 4. Compute the Drying Department's cost of units transferred out to the Finishing Department for pulping, conversion, and in total. 5. Prepare a cost reconciliation report for the Drying Department. Pulping Percent Completed Conversion Pulping 100% 100% Compute the Drying Department's cost per equivalent unit for pulping and conversion. Note: Round your answers to 2 decimal places. < Required 1 $ 1,584 $ 1,024 152,000 $ 81,616 $ 55,856 Conversion 80% 75% Required 3 >
spooled onto reels. The company uses the weighted-average method in its process costing system. Data for March for the Drying Department follow: 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 Required: For March: Complete this question by entering your answers in the tabs below. Units 3,200 8,000 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 Required 2 Required 3 Required 4 Required 5 Cost per equivalent unit 1. Compute the Drying Department's equivalent units of production for pulping and conversion. 2. Compute the Drying Department's cost per equivalent unit for pulping and conversion. 3. Compute the Drying Department's cost of ending work in process inventory for pulping, conversion, and in total. 4. Compute the Drying Department's cost of units transferred out to the Finishing Department for pulping, conversion, and in total. 5. Prepare a cost reconciliation report for the Drying Department. Pulping Percent Completed Conversion Pulping 100% 100% Compute the Drying Department's cost per equivalent unit for pulping and conversion. Note: Round your answers to 2 decimal places. < Required 1 $ 1,584 $ 1,024 152,000 $ 81,616 $ 55,856 Conversion 80% 75% Required 3 >
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
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.
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Question
Transcribed Image Text:spooled onto reels. The company uses the weighted-average method in its process costing system. Data for March for the Drying
Department follow:
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
Required:
For March:
Units
3,200
8,000
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.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2 Required 3 Required 4 Required 5
1. Compute the Drying Department's equivalent units of production for pulping and conversion.
2. Compute the Drying Department's cost per equivalent unit for pulping and conversion.
Cost per equivalent unit
Percent Completed
3. Compute the Drying Department's cost of ending work in process inventory for pulping, conversion, and in total.
4. Compute the Drying Department's cost of units transferred out to the Finishing Department for pulping, conversion, and in total.
5. Prepare a cost reconciliation report for the Drying Department.
Pulping
Pulping
100%
100%
Conversion
$ 1,584
$ 1,024
152,000
$ 81,616
$ 55,856
Compute the Drying Department's cost per equivalent unit for pulping and conversion.
Note: Round your answers to 2 decimal places.
< Required 1
Conversion
80%
75%
Required 3 >
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