Question

Superior Micro Products uses the weighted-average method in its process costing system. During January, the Delta Assembly Department completed its processing of 26,900 units and transferred them to the next department. The cost of beginning work in process inventory and the costs added during January amounted to $662,032 in total. The ending work in process inventory in January consisted of 3,400 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 $ 12.80 $ 3.70 $6.90 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 Equivalent units Overhead < Required 1 Required 2 >

Answer 1

Solution 1:

Computation of Equivalent unit of Production - Superior Micro
Particulars	Physical Units	Materials	Labor	Overhead
Unit completed & Transferred out	26900	26900	26900	26900
Ending WIP	3400	1700	1020	1020
Equivalent units of production	30300	28600	27920	27920

solution 2 & 3:

Computation of Cost of ending WIP and units completed & transferred out - Superior Micro Products
Particulars	Materials	Labor	Overhead	Total
Equivalent unit of Ending WIP	1700	1020	1020
Cost per equivalent unit	$12.80	$3.70	$6.90
Cost of Ending WIP (Equivalent unit * Cost per equivalent unit)	$21,760	$3,774	$7,038	$32,572
Units completed and transferred	26900	26900	26900
Cost of Units completed and transferred out	$344,320	$99,530	$185,610	$629,460

Solution 4:

Cost reconciliation - Superior Micro
Particulars	Amount
Total cost to be accounted for	$662,032.00
Costs accounted for as follows:
Cost of unit completed	$629,460
Ending WIP	$32,572
Total cost accounted for	$662,032