Question

Superior Micro Products uses the weighted average method in its process costing system. During January, the Delta Assembly Department completed its processing of 25,000 units and transferred them to the next department. The cost of beginning work in process inventory and the costs added during January amounted to $653,994 in total. The ending work in process inventory in January consisted of 2,600 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 $ 13.30 $3.80 $8.00 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. Labor Overhead Equivalent units Required Required 2 > Materials

Answer 1

1)

Equivalent units:

Material:

= 25,000 + (2,600 X 50%)

= 26,300

Labor:

= 25,000 + (2,600 X 30%)

= 25,780

Overhead:

= 25,000 + (2,600 X 30%)

= 25,780

2)

Cost of ending work in process inventory:

Material:

= 2,600 X 50% X $13.30

= $17,290

Labor:

= 2,600 X 30% X $3.80

= $2,964

Overhead:

= 2,600 X 30% X $8

= $6,240

Total:

= $17,290 + $2,964 + $6,240

= $26,494

3)

Cost of completed and transferred out:

Material:

= 25,000 X $13.30

= $332,500

Labor:

= 25,000 X $3.80

= $95,000

Overhead:

= 25,000 X $8

= $200,000

Total:

= $332,500 + $95,000 + $200,000

= $627,500

4)

Total cost to be accounted for	$653,994
Cost accounted for as follows
Cost of ending work in process inventory	$26,494
Cost of units completed and transferred out	$627,500
Total cost accounted for	$653,994