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 $667,878 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	$	12.90		$	5.10		$	6.40

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	26100	26100	26100	26100
	Units in ending inventory	2100	1470	1050	1050
1)	Equivalent units of production	28200	27570	27150	27150
		Material	Labor	Overhead	Total
Given	Cost per equivalent unit	12.90	5.10	6.40	24.40
		Total
2)	Units in ending inventory	31,038	(see below note)
3)	Units completed and transfer	636,840	(see below note)
		Material	Labor	Overhead	Total
	Cost Accounted for
	Units completed and transfer	336,690	133,110	167,040	636,840
	Units in ending inventory	18,963	5,355	6,720	31,038
	Total Cost Accounted for	355,653	138,465	173,760	667,878
4)	Cost reconciliation
	Total cost to be accounted for	667,878	(See above note)
	Cost Accounted for
	Units completed and transfer	636,840
	Units in ending inventory	31,038
	Total Cost Accounted for	667,878