Question

Exercise S-12 Equivalent Units: Assigning Costs: Cost Reconcilation-Weighted-Average Method [LO5-2 LO5-4, LO5-5] Superior Micro Products uses the weighted-average method in its process costing system. During January, the Delta Assembly Department completed its processing of 25,300 units and transferred them to the next department. The cost of beginning work in process inventory and the costs added during January amounted to $656.174 in total. The ending work in process inventory in January consisted of 3,600 units, which were 50%complete with respect to materials and 30% complete with respect to labor and overhead. The costs per equivalent unit for the month were as follows Materials Labor Overhead Cost per equivalent unit $13-70 $4.10 $6.70 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 departmert 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 is not complete. Complete this question by entering your answers in the tabs below Required 1Required 2 Required 3 Required 4 Compute the equivalent units of materials, labor, and overhead in the ending work in process in ventory for the month Materials Labor Overhead Equivalent un 27,100 26,380 26,380

Answer 1

Solution 1:

Production Cost Report - Weighted Average - Assembly Department
Particulars	Physical Units	Equivalent Units
		Material	Conversion
Units accounted for:
Unit completed & Transferred out	25300	25300	25300
Ending Work In Process (50%, 30%)	3600	1800	1080
Equivalent units of production	28900	27100	26380

Solution 2&3:

Computation of Cost of ending WIP and units completed & transferred out - Assembly Department
Particulars	Material	Conversion	Total
Equivalent unit of Ending WIP	1800	1080
Cost per equivalent unit	$13.70	$10.80
Cost of Ending WIP (Equivalent unit * Cost per equivalent unit)	$24,660	$11,664	$36,324
Units completed and transferred	25300	25300
Cost of units completed & Transferred (Unit completed * cost per equivalent unit)	$346,610	$273,240	$619,850

Solution 4:

Cost reconciliation - Assembly Department
Particulars	Amount
Costs to be accounted for:
Cost of beginning WIP & Cost added during the period	$656,174.00
Total Cost to be accounted for	$656,174.00
Costs accounted for as follows:
Cost of unit transferred out	$619,850
Ending WIP:
Pulping	$24,660
Converison	$11,664
Total Ending WIP	$36,324
Total cost accounted for	$656,174