Question

Exercise 4-12 Equivalent Units; Assigning Costs; Cost Reconciliation-Weighted-Average Method (L04-2, LO4-4, LO4-5) Superior Micro Products uses the weighted average method in its process costing system. During January, the Delta Assembly Department completed its processing of 25.400 units and transferred them to the next department. The cost of beginning work in process inventory and the costs added during January amounted to $660.960 in total. The ending work in process inventory in January consisted of 4,000 units, which were 40% complete with respect to materials and 20% complete with respect to labor and overhead. The costs per equivalent unit for the month were as follows: per equivalent unit Materials Labor Overhead $ 14.00 $4.40 $ 6.40 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. Required 1 Required 2 Required 3 Required 4

Answer 1

1
	Materials	Labor	Overhead
Units completed and transferred out	25400	25400	25400
Work in process, ending:
4000 X 40%	1600
4000 X 20%		800	800
Equivalent units of production	27000	26200	26200
2
	Materials	Labor	Overhead	Total
Work in process, ending units	1600	800	800
X Cost per Equivalent unit	14.00	4.40	6.40
Cost of ending work in process inventory	22400	3520	5120	31040
3
	Materials	Labor	Overhead	Total
Units completed and transferred out	25400	25400	25400
X Cost per Equivalent unit	14.00	4.40	6.40
Cost of Units completed and transferred out	355600	111760	162560	629920
4
Cost Reconciliation:
Total Cost to be accounted for	660960
Cost accounted for as follows:
Cost of Units completed and transferred out	629920
Cost of ending work in process inventory	31040
Total Cost accounted for	660960