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.

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:


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.

Weighted-Average Method:

1.
Equivalent units of production:

	Pulping	Conversion
Transferred to next department	133,900	133,900
Equivalent units in ending work in process inventory:
Pulping: 7,000 units × 100% complete	7,000
Conversion: 7,000 units × 75% complete		5,250
Equivalent units of production	140,900	139,150

2.
Cost per equivalent unit:

	Pulping		Conversion
Cost of beginning work in process	$	885	$	360
Cost added during the period		44,203		21,904
Total cost (a)	$	45,088	$	22,264
Equivalent units of production (b)		140,900		139,150
Cost per equivalent unit (a) ÷ (b)	$	0.32	$	0.16

3. & 4.
Cost of ending work in process inventory and units transferred out:

	Pulping		Conversion		Total
Ending work in process inventory:
Equivalent units		7,000		5,250
Cost per equivalent unit	$	0.32	$	0.16
Cost of ending work in process inventory	$	2,240	$	840	$	3,080
Units completed and transferred out:
Units transferred to the next department		133,900		133,900
Cost per equivalent unit	$	0.32	$	0.16
Cost of units completed and transferred out	$	42,848	$	21,424	$	64,272

5.
Cost reconciliation:
Cost of beginning work in process inventory ($885 + $360) = $1,245
Costs added to production during the period ($44,203 + $21,904) = $66,107

Thank you!