Scribners Corporationproduces fine papers in three production departments—Pulping,Drying, and Finishing. In the Pulping Department, raw materialssuch as wood fiber and rag cotton are mechanically and chemicallytreated to separate their fibers. The result is a thick slurry offibers. In the Drying Department, the wet fibers transferred fromthe Pulping Department are laid down on porous webs, pressed toremove excess liquid, and dried in ovens. In the FinishingDepartment, the dried paper is coated, cut, and spooled onto reels.The company uses the weighted-average method in its process costingsystem. Data for March for the Drying Department follow:
| | Percent Completed |
| Units | Pulping | Conversion |
| Workin process inventory, March 1 | 3,500 | 100 | % | | 80 | % |
| Work in processinventory, March 31 | 5,500 | 100 | % | | 70 | % |
| Pulping cost inwork in process inventory, March 1 | | | | $ | 1,645 | |
| Conversion costin work in process inventory, March 1 | | | | $ | 1,050 | |
| Unitstransferred to the next production department | | | | | 154,900 | |
| Pulping costadded during March | | | | $ | 78,555 | |
| Conversion costadded during March | | | | $ | 52,925 | |
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No materials are addedin the Drying Department. Pulping cost represents the costs of thewet fibers transferred in from the Pulping Department. Wet fiber isprocessed in the Drying Department in batches; each unit in theabove table is a batch and one batch of wet fibers produces a setamount of dried paper that is passed on to the FinishingDepartment.
Required:
1. Compute the DryingDepartment's equivalent units of production for pulping andconversion in March.
2. Compute the DryingDepartment's cost per equivalent unit for pulping and conversion inMarch.
3. Compute the DryingDepartment's cost of ending work in process inventory for pulping,conversion, and in total for March.
4. Compute the DryingDepartment's cost of units transferred out to the FinishingDepartment for pulping, conversion, and in total in March.
5. Prepare a costreconciliation report for the Drying Department for March.
Complete thisquestion by entering your answers in the tabs below.
Prepare a costreconciliation report for the Drying Department for March. (Roundyour intermediate calculations to 2 decimal places.)
Complete thisquestion by entering your answers in the tabs below. Compute the DryingDepartment's cost of units transferred out to the FinishingDepartment for pulping, conversion, and in total in March. (Roundyour intermediate calculations to 2 decimal places.) | | | Pulping | Conversion | Total | | Cost of unitscompleted and transferred out | | | |
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| Prepare a costreconciliation report for the Drying Department for March. (Roundyour intermediate calculations to 2 decimal places.) | | Drying Department | | Cost Reconciliation | | Costs to beaccounted for: | | | | | | | Total cost tobe accounted for | $0 | | Costs accountedfor as follows: | | | | | | | Total costaccounted for | $0 |
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