Question

Please answer 1-4 :)

Superior Micro Products uses the weighted average method in its process costing system. During January, the Delta Assembly Department completed its processing of 26,100 units and transferred them to the next department. The cost of beginning work in process inventory and the costs added during January amounted to $699,720 in total. The ending work in process inventory in January consisted of 2,600 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 $ 12.50 Labor $ 4.80 Overhead $ 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. Materials Labor Overhead Equivalent units < Required 1 Required 2 >

Answer 1

1. Equivalent Units = Ending WIP Inventory * Completion %

Equivalent Units for materials = 2600 * 70% = 1,820 Units

Equivalent Units for Labor = 2600 * 50% = 1300 Units

Equivalent Units for Overhead = 2600 * 50% = 1300 Units

2. Computation of cost of ending Inventoy in WIP

cost of ending inventory for materials = 1820 x 12.50 = $22,750
cost of ending inventory for labor = 1,300 x 4.80 = $6,240
cost of ending inventory for overhead = 1,300 x 8.0 = $10,400

Total cost of ending inventory = $22,750 + $6,240 + $10,400= $39,390

3 . Cost of Units transferred to next department

cost of ending work in process inventory for materials = 26,100 x 12.50 = $326,250
cost of ending work in process inventory for labor = 26,100 x 4.80 = $125,280
cost of ending work in process inventory for overhead = 26,100 x 8.0 = $208,800

Total cost of ending work in process inventory = $326,250 + $125,280 + $208,800 = $660,330

4. Cost reconciliation for january

Total cost to be accounted for $699,720 = cost of ending work in process inventory $39,390 + cost of units completed and transferred out $660,330

Total cost accounted for $699,720 ( total cost to be accounted for = cost of beginning work in process inventory + cost added to production during the period) ( Given in the question thus the same is reconcilied)