Question

Superior Micro Products uses the weighted average method in its process costing system. During January, the Delta Assembly Department completed its processing of 25,300 units and transferred them to the next department. The cost of beginning work in process inventory and the costs added during January amounted to $718.720 in total. The ending work in process inventory in January consisted of 2,600 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 $ 14.50 Labor $ 5.00 Cost per equivalent unit Overhead $ 7.5e 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.)

Answer 1

whole UPP 2 EUP mated %. EUP Ending wook po Pozcess labor очо 024 EUP I overhead 1040 2600 60% 1560 40%. 40%. Total cost of Ending Cook in process Material 1560X$14.50 +22,620 labouro | overhead 1040x $5.00 1040x $7.50 -$5,200 = $ 7,800 $35,620 3. Material labowo Overhead Toral cost of units 25,300 x$14.50 25,300x$5.00 25,300x$7.50 toansferred to next = $366,850 = $126,500 = $ 189,750 -department $683,100 I I cost to be accounts For cost of beginning wOok io pooceso e cost added 718,720 718,720 Toteel cost tobe accounted for cost accounted as Cost of onts transferred out 683,100 cost of ending wosk $ poocess 35, 620 Total cost accounted as 718,720