Question

Superior Micro Products uses the weighted-average method in its process costing system. During January, the Delta Assembly Department completed its processing of 26,300 units and transferred them to the next department. The cost of beginning work in process inventory and the costs added during January amounted to $739,692 in total. The ending work in process inventory in January consisted of 2,700 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	$	14.30		$	4.40		$	8.30

Required:

1. Compute the equivalent units of materials, labor, and overhead in the ending work in process inventory for the month.

	Materials	Labor	Overhead
Equivalant Units	?	?	?

2. Compute the cost of ending work in process inventory for materials, labor, overhead, and in total for January.

	Materials	Labor	Overhead	Total
Cost of ending work in process inventory	?	?	?	?

3. Compute the cost of the units transferred to the next department for materials, labor, overhead, and in total for January.

	Materials	Labor	Overhead	Total
Cost of units completed and transferred out	?	?	?	?

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.)

Cost Reconciliation	Cost Reconciliation
Total cost to be accounted for	?
Cost accounted for as follows	?
?1	?
?1	?
Total cost accounted for	?

For ?1 they are fill in the blank the options are cost of beggining work in process inventory, cost of ending work in process inventory, cost of units completed and transferrd out, cost added to production during the period.

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	26300	26300	26300	26300
	Units in ending inventory	2700	1350	810	810
1)	Equivalent units of production	29000	27650	27110	27110
		Material	Labor	Overhead	Total
Given	Cost per equivalent unit	14.30	4.40	8.30	27.00
		Total
2)	Units in ending inventory	29,592	(see below note)
3)	Units completed and transfer	710,100	(see below note)
		Material	Labor	Overhead	Total
	Cost Accounted for
	Units completed and transfer	376,090	115,720	218,290	710,100
	Units in ending inventory	19,305	3,564	6,723	29,592
	Total Cost Accounted for	395,395	119,284	225,013	739,692
4)	Cost reconciliation
	Total cost to be accounted for	739,692	(See above note)
	Cost Accounted for
	Units completed and transfer	710,100
	Units in ending inventory	29,592
	Total Cost Accounted for	739,692