Question

Superior Micro Products uses the weighted average method in its process costing system. During January, the Delta Assembly Department completed its processing of 26,100 units and transferred them to the next department. The cost of beginning work in process inventory and the costs added during January amounted to $675,102 in total. The ending work in process inventory in January consisted of 2,400 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 $ 14.00 $ 3.20 $ 7.56 Cost per equivalent unit 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 Compute the equivalent units of materials, labor, and overhead in the ending work in process inventory for the month. Materials Labor Overhead Equivalent units

Answer 1

1) Equivalent unit of Ending WIP

	Material	Labor	overhead
Equivalent unit	2400*60% = 1440	2400*40% = 960	960

2) Cost of ending WIP

	Material	Labor	overhead	Total
Cost of EWIP	2400*60% = 1440*14 = 20160	2400*40% = 960*3.20 = 3072	960*7.50 = 7200	30432

3) Cost of unit transferred out = (14+3.2+7.5)*26100 = 644670

4) Cost reconciliation

Total Cost to be accounted for	675102
Cost accounted for as follows
Cost of unit transferred out	644670
Cost of ending WIP	30432
Total Cost accounted for	675102