Question

Superior Micro Products uses the weighted-average method in its process costing system. During January, the Delta Assembly Department completed its processing of 25,700 units and transferred them to the next department. The cost of beginning work in process inventory and the costs added during January amounted to $702,150 in total. The ending work in process inventory in January consisted of 3,600 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	Labor	Overhead
Cost per equivalent units	$14.00	$4.40	$7.10

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

Required 1 :
	Materials	Labor	Overhead
Equivalent units of production [ 3600 * % completion ]	2160	1440	1440
Required 2 :
	Materials	Labor	Overhead	Total
Ending work in process equivalent units of production	2160	1440	1440
(*) Cost per equivalent units	14.00	4.40	7.10
Cost of ending work in process inventory	30240	6336	10224	46800
Required 3 :
	Materials	Labor	Overhead	Total
Units completed and transferred to next	25700	25700	25700
(*) Cost per equivalent units	14.00	4.40	7.10
Cost of the units transferred to the next department	359800	113080	182470	655350

Required 4 :
Cost reconciliation
Total cost to be accounted for	702150
Costs accounted for as follows :
Cost of ending work in process inventory	46800
Cost of units completed and transferred out	655350
Total cost accounted for	702150