Question

One question, four parts to the same question.

Superior Micro Products uses the weighted-average method in its process costing system. During January, the Delta Assembly Department completed its processing of 25,200 units and transferred them to the next department. The cost of beginning work in process inventory and the costs added during January amounted to $664.272 in total. The ending work in process inventory in January consisted of 2,800 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: Cost per equivalent unit Materials $ 14.40 Labor $ 4.00 Overhead $ 6.80 Requlred: 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. Overhead Equivalent units Materials Labor Required 1 Required 2 >

Answer 1

The detailed answers to all the parts along with explanation is given below.

SUPERIOR MICRO PRODUCTS 1.COMPUTATION OF EQUIVALENT UNITS OF MATERIAL, LABOUR AND OVERHEAD MATERIALS EQUIVALENT UNITS 2800 * 50% = 1400 units LABOUR OVERHEAD ||2800 * 30% = 840 units 2800 * 30% = 840 units Equivalent units of material, labour and overhead are calculated by multiplying the completion percentage to the ending work in process units given in the question with respect to material, labour and overhead 2.COMPUTATION OF COST OF ENDING WORK IN PROCESS INVENTORY MATERIALS LABOUR OVERHEAD TOTAL COST OF ENDING WORK IN PROCESS 1400 * $14.40 = $20,160 840 * $4.00 = $3,360 840 * $6.80 = $5,712 $29,232 Ending Work in Process is calculated by multiplying equivalent units of material, labour and overhead with cost per unit 3.COMPUTATION OF COST OF THE UNITS TRANSFERRED TO THE NEXT DEPARTMENT MATERIALS LABOUR OVERHEAD TOTAL COST OF UNITS TRANSFERRED 25,200 * $14.40 = $362,880 25,200 * $4.00 = $100,800 25,200 * $6.80 = $171,360 $635,040 Cost of units transferred is calculated by multiplying the completed units which completed its processing in January with cost per unit

4. COST RECONCILIATION FOR JANUARY $664,272 Total cost to be accounted for Costs accounted for as follows Cost of ending Work in Process Cost of units transferred Total cost accounted for $29,232 $635,040 $664,272