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 $688,870 in total. The ending work in process inventory in January consisted of 2,700 units, which were 80% complete with respect to materials and 60% complete with respect to labor and overhead. The costs per equivalent unit for the month were as follows: Cost per equivalent unit Materials Labor Overhead $ 13.70 $ 5.10 $ 6.80 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

	Material	labor	Overhead
Equivalent unit (Incomplete units X percentage of completion)	2160 (2700 units X 80%)	1620 (2700 units X 60%)	1620 (2700 units X 60%)

2

	Material	labor	Overhead	Total
Cost of ending work in process inventory (Equivalent unit X Cost per equivalent unit)	$29592 (2160 units X $13.70)	$8262 (1620 units X $5.10)	$11016 (1620 units X $6.80)	$48870

3

	Material	labor	Overhead	Total
Cost of units completed and transferred out (Units transferred X Cost per equivalent unit)	$342500 (25000 units X $13.70)	$127500 (25000 units X $5.10)	$170000 (25000 units X $6.80)	$640000

4

Cost reconciliation

Particulars	Amount ($)
Total cost to be accounted for	688870
Costs accounted for as follows
Cost of units complketed and transferred out	640000
Cost of ending work in process inventory	48870
Total cost accounted as	688870

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