Question

(To record completion of jobs 357 & K52) e Textbook and Media List of Accounts Assuming that Manufacturing Overhead has a debit balance of $3,600, determine whether overhead has been under/over applied and make the adjusting entry. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit 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%

no need to answer the last part of question

Answer 1

Solution :

Waterway Corporation Computation of Equivalent units - Molding Department
Particulars	Physical Units	Equivalent units
		Material	Conversion
Work in Process, beginning	21400
Started during the current period	59600
Total units to account for	81000
Units accounted for:
Unit completed & Transferred out	57800	57800	57800
Closing WIP:	23200
Material (50%)		11600
Conversion (10%)			2320
Equivalent units of production	81000	69400	60120

Waterway Corporation - Molding Department Computation of Cost per equivalent unit of Production
Particulars	Material	Conversion
Opening WIP	$167,480.00	$84,660.00
Cost Added during Period	$276,680.00	$336,180.00
Total cost to be accounted for	$444,160.00	$420,840.00
Equivalent units of production	69400	60120
Cost per Equivalent unit	$6.40	$7.00

Waterway Corporation - Molding Department Computation of Cost of ending WIP and units completed & transferred out
Particulars	Material	Conversion	Total
Equivalent unit of Ending WIP	11600	2320
Cost per equivalent unit	$6.40	$7.00
Cost of Ending WIP (Equivalent unit * Cost per equivalent unit)	$74,240	$16,240	$90,480
Units completed and transferred	57800	57800
Cost of units completed & Transferred (Unit completed * cost per equivalent unit)	$369,920	$404,600	$774,520

Waterway Corporation - Molding Department Cost reconcilaition
Particulars	Amount
Costs to be accounted for:
Cost of beginning WIP inventory	$252,140.00
Cost added to production	$612,860.00
Total Cost to be accounted for	$865,000.00
Costs accounted for as follows:
Cost of unit transferred out	$774,520
Ending WIP	$90,480
Total cost accounted for	$865,000.00