Question

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.)

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 $674,980 in total. The ending work in process inventory in January consisted of 4,000 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: Cost per equivalent unit Materials $13.20 Labor Overhead $ 3.70 $7.00 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 process inventory for the month. Compute the equivalent units of materials, labor, and overhead in th Materials Labor Overhead Equivalent units Required 2 >

Answer 1

1	Equivalent units	Material	Labor	Overhead
	Units transferred                      A	26200	26200	26200
	Ending Units	4,000	4,000	4,000
	Completion	60%	40%	40%
	B	2400	1600	1600
	Total units	28600	27800	27800
2	Cost of ending work in progress
	Particulars	Material	Labor	Overheads	Total
	Ending units	4,000	4000	4,000
	Cost per equivalent units	13.20	3.7	7.00
	Completion	60%	40%	40%
	Total cost	31680	5920	11200	48800
3	Cost of goods transferred
	Particulars	Material	Labor	Overheads	Total
	Number of units	26200	26200	26200
	Cost per equivalent units	13.20	3.70	7.00	23.90
	Total amount	345840	96940	183400	626180

4	Reconciliation report
	Total cost to be accounted for	674980
	Cost accounted for as follows
	Cost of goods transferred	626180
	Work in process ending	48800
	Total cost to be accounted for	674980