Question

Waterways Problem 03 Because most of the parts for its irrigation systems are standard, Waterways handles the majority of its manufacturing as a process cost system. There are multiple process departments. Three of these departments are the Molding, Cutting, and Welding departments. All items eventually end up in the Packaging Department, which prepares items for sale in kits or individually. The following information is available for the Molding department for January. Work in process beginning:      Units in process 23,000      Stage of completion for materials 80%      Stage of completion for labor and overhead 30%      Costs in work in process inventory:        Materials $169,100        Labor 67,890        Overhead 17,360 Total costs in beginning work in process $254,350 Units started into production in January 60,000 Units completed and transferred in January 57,500 Costs added to production:      Materials $263,640      Labor 292,815      Overhead 60,300 Total costs added into production in January $616,755 Work in process ending:      Units in process 25,500      Stage of completion for materials 50%      Stage of completion for labor and overhead 10%

Show the equivalent units for materials and conversion costs if Waterways used FIFO instead of weighted-average. Equivalent Units Physical Units Materials Conversion Units accounted for Completed and transferred out      Work in process, Jan. 1      Started and completed in Jan. Work in process, Jan. 31      Total units

Answer 1

Show the equivalent units for materials and conversion costs if Waterways used FIFO instead of weighted-average.

				Equivalent Units
		Physical Units		Materials		Conversion
Units accounted for
Completed and transferred out
Work in process, Jan. 1		23000		(23000*20%)= 4600		(23000*70%)= 16100
Started and completed in Jan.		34500		34500		34500
Work in process, Jan. 31		25500		(25500*50%)= 12750		(25500*10%)= 2550
Total units		83000		51850		53150

Units started and completed in Jan.= Units completed and transferred-Work in process, Jan 1

= 57500-23000= 34500 units