Question

Superior Micro Products uses the weighted average method in its process costing system. During January, the Delta Assembly Department completed its processing of 26,800 units and transferred them to the next department. The cost of beginning work in process inventory and the costs added during January amounted to $738,588 in total. The ending work in process inventory in January consisted of 3,600 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: Cost per equivalent unit Materials $ 12.90 Labor $ 4.90 Overhead $ 7.70 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. Materials Labor Overhead Equivalent units

Answer 1

1)

Particulars	Units	Material	Labor	Overheads
		% Completion	Units	% Completion	Units	% Completion	Units
Units transferred to next process	26,800	100%	26,800	100%	26,800	100%	26,800
Closing WIP	3,600	70%	2,520	50%	1,800	50%	1,800
Total(Equivalent Units)			29,320		28,600		28,600

2)

Particulars	Elements	Equivalent Units(A)	Cost per Equivalent Unit(B)	Cost of Equivalent Unit(A X B)	Total
Closing WIP	Material	2,520	12.90	32,508
	Labor	1,800	4.90	8,820
	Overheads	1,800	7.70	13,860	55,188

3)

Particulars	Elements	Equivalent Units(A)	Cost per Equivalent Unit(B)	Cost of Equivalent Unit(A X B)	Total
Units transferred to next process	Material	26,800	12.90	345,720
	Labor	26,800	4.90	131,320
	Overheads	26,800	7.70	206,360	683,400

4)

Cost Reconciliation
Total cost to be accounted for	$738,588
Cost accounted for as follows:
Units transferred to next process	$683,400
Closing WIP	$55,188
Total Cost accounted for	$738,588