Question

Superior Micro Products uses the weighted average method in its process costing system. During January, the Delta Assembly Department completed its processing of 26,200 units and transferred them to the next department. The cost of beginning work in process inventory and the costs added during January amounted to $698,244 in total. The ending work in process inventory in January consisted of 3,600 units, which were 60% complete with respect to materials and 40% complete with respect to labor and overhead. The costs per equivalent unit for the month were as follows: Materials $13.90 Labor Overhead $ 3.70 $ 7.30 Cost per equivalent unit Required: 1. Compute the equivalent units of materials, labor, and overhead in the ending work in process inventory for the month. 2. Compute the cost of ending work in process inventory for materials, labor, overhead, and in total for January. 3. Compute the cost of the units transferred to the next department for materials, labor, overhead, and in total for January 4. Prepare a cost reconciliation for January. (Note: You will not be able to break the cost to be accounted for into the cost of beginning work in process inventory and costs added during the month.) Complete this question by entering your answers in the tabs below. Requirep : Required 2 Required 3 Required 4 Compute the equivalent units of materials, labor, and overhead in the ending work in process inventory for the month. Materials Labor Overhead Equivalent units Required 2 >

Answer 1

Soltion 1:

D Equivalent units of production (EUP) in the Ending work in process - Weighted Average method Units %Material EUP-Material % Labor | EUP- Labor % Overhead | EUP- Overhead units of Ending work in process 36001 60% 2160 40% 1440 40% 1440| 6 23 24 et826 Sheet828 ) Sheet830 Sheet144 (2) Sheet215 (2) Sheet833 Sheet833 (2) Sheet835

Solution 2 and 3:

м. Superior Micro Products Computation of Ending Work in process inventory Materials Labor Overhead Total for January Equivalent units 2160 1440 1440 Cost per equivalent unit $13.90 $3.70 $7.30 Cost of Ending WIP (Equivalent unit * Cost per equivalent unit) $30,024 $5,328 $10,512 $45,864 10 11 12 Total for January 14. Computation of Cost of the units transferred Materials | Labor Overhead Equivalent units (26200*100%) 26200 26200 26200 Cost per equivalent unit $13.90 $3.70 $7.30 Cost of Units transferred (Equivalent units* Cost per equivalent unit) $364,180 $96,940 $191,260 $652,380 17 18 19 20 et826 Sheet828 ) Sheet830 Sheet144 (2) Sheet215 (2) Sheet833 Sheet833 (2) Sheet835

Solution 4:

- W 10 11 Cost Reconciliation Report Particulars Costs to be accounted for Amount $698,244 12 13 Costs accounted for as follows: 16 Cost of unit transferred out Cost of Ending Work in process inventory Total costs accounted for $652,380 $45,864 $698,244 17 21 22 23 et826 Sheet828 ) Sheet830 Sheet144 (2) Sheet215 (2) Sheet833 Sheet833 (2) Sheet835