Papyrutech corporation produces fine papers in three

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Reference no: EM13579365

Papyrutech Corporation produces fine papers in three production departments%u2014Pulping, 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 October for the Drying Department follow:

		Percent Completed
	Units	Pulping	Conversion
Work in process inventory, March 1	3100	100%	80%
Work in process inventory, March 31	7,200	100%	75%


Pulping cost in work in process inventory, March 1	$1054
Conversion cost in work in process inventory, March 1	$496
Units transferred to the next production department	138100
Pulping cost added during March	$51254
Conversion cost added during March	$28204

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.

Requirement 1:

Determine the equivalent units for March for pulping and conversion.

	Pulping	Conversion
Equivalent units of production

Requirement 2:

Compute the costs per equivalent unit for March for pulping and conversion.

	Pulping	Conversion
Cost per equivalent unit	$	$

Reference no: EM13579365

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