Question

QUESTION 3: Because most of the parts for its irrigation systems are standard, Waterways handles the majority of its manufacturing as a process cost system. There are multiple process departments. Three of these departments are the Molding. Cutting, and Welding departments. All items eventually end up in the Packaging Department, which prepares items for sale in kits or individually. The following information is available for the Molding department for January 21,400 80% 30% Work in process beginning: Units in process Stage of completion for materials Stage of completion for labor and overhead Costs in work in process inventory: Materials Labor Overhead Total costs in beginning work in process $167.480 67.400 17.260 $252,140 59,600 57,800 Units started into production in January Units completed and transferred in January Costs added to production: Materials Labor Overhead Total costs added into production in January Work in process ending: Units in process Stage of completion for materials Stage of completion for labor and overhead $276.680 275.910 60,270 $612,860 23,200 50% 10%

Answer 1

Solution:

Waterways Corporation Molding Department Production cost report For the month ended January 31 Equivalent units Physical units Materials Conversion costs Quantities: Units to be Account for: Work in process, January 1 Started in production Total units 10 11 12 21400 59600 81000 14 15 Units accounted for: Units transferred out Work in process, January 31 Total units 57800 23200 81000 57800 11600 69400 57800 2320 60120 Materials Conversion costs Total Costs 17 18 19 20 Costs Unit Costs: Total Costs in january Equivalent Units Units Costs $865,000 $444,160 69400 $6.40 $420,840 60120 $7.00 $13.40 23 25 26 Costs to be accounted for: Work in process, January 1 Started into production Total Costs $252,140 $612,860 $865,000 28 29 30 31 $774,520 32 33 Cost Reconciliation Schedule: Costs accounted for: Transferred out Work in process inventory, January 31 Material Conversion Total Costs accounted for $74,240 $16,240 34 35 36 $90,480 $865,000 38 39 40 41 42 45 46 48 49 51 Sheet146 (8) Sheet442 Sheet37 Sheet5 She