Question

Superior Micro Products uses the weighted-average method in its process costing system. During January, the Delta Assembly Department completed its processing of 25,400 units and transferred them to the next department. The cost of beginning work in process inventory and the costs added during January amounted to $704,202 in total. The ending work in process inventory in January consisted of 2,100 units, which were 70% complete with respect to materials and 50% 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	$	14.10		$	4.40		$	7.90

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.)
Superior Micro Products uses the weighted-average method in its process costing system. During January, the Delta Assembly Department completed its processing of 25,400 units and transferred them to the next department. The cost of beginning work in process inventory and the costs added during January amounted to $704,202 in total. The ending work in process inventory in January consisted of 2,100 units, which were 70% complete with respect to materials and 50% complete with respect to labor and overhead. The costs per equivalent unit for the month were as follows: Materials $ 14.10 Labor $ 4.40 Overhead $ 7.90 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.)

Answer 1

	Superior Micro Products
	Production Cost Report (Extracts)
	For the month ended January
Answer No.		Actual Units	Equivalent Units
			Material	Labor	Overhead
	Units Completed and Transferred	25400	25400	25400	25400
	Units in ending inventory	2100	1470	1050	1050
1)	Equivalent units of production	27500	26870	26450	26450
		Material	Labor	Overhead	Total
Given	Cost per equivalent unit	14.10	4.40	7.90	26.40
		Total
2)	Units in ending inventory	33,642	(see below note)
3)	Units completed and transfer	670,560	(see below note)
		Material	Labor	Overhead	Total
	Cost Accounted for
	Units completed and transfer	358,140	111,760	200,660	670,560
	Units in ending inventory	20,727	4,620	8,295	33,642
	Total Cost Accounted for	378,867	116,380	208,955	704,202
4)	Cost reconciliation
	Total cost to be accounted for	704,202	(See above note)
	Cost Accounted for
	Units completed and transfer	670,560
	Units in ending inventory	33,642
	Total Cost Accounted for	704,202