Because most of the parts for its irrigation systems are standard, Waterways han
ID: 2437196 • Letter: B
Question
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 Package 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 22,000 Stage of completion for materials 80% Stage of completion for labor and overhead 30% Costs in work in process inventory: Materials $168,360 Labor 67,564 Overhead 17,270 Total costs in beginning work in process $253,194 Units started into production in January 60,000 Units completed and transferred in January 58,000 Costs added to production: Materials $264,940 Labor 289,468 Overhead 60,578 Total costs added into production in January $614,986 Work in process ending: Units in process 24,000 Stage of completion for materials 50% Stage of completion for labor and overhead 10%
Collapse question part (a) Prepare a production cost report for Waterways using the weighted-average method. (Round unit costs to 2 decimal places, e.g. 2.25.)
WATERWAYS CORPORATION
Molding Department Production Report
Equivalent Units
Quantities Physical Units Materials Conversion Costs
Units to be accounted for
Work in process, Jan. 1
Started into production
Total units
Units accounted for
Transferred out
Work in process, Jan 31
Total units
Costs Materials Conversion Costs Total
Unit costs
Costs in January $ $ $
Equivalent units
Unit costs $ $ $
Costs to be accounted for
Work in process, Jan. 1 $
Started into production
Total costs $
Cost Reconciliation Schedule
Costs accounted for
Transferred out $
Work in process, Jan. 31
Materials
Conversion costs
Total costs $
this is orginal format
Explanation / Answer
Answers
Reconciliation of Units
A
Opening WIP
22000
B
Introduced
60000
C=A+B
TOTAL
82000
D
Transferred
58000
E=C-D
Closing WIP
24000
Statement of Equivalent Units
Material
Conversion Cost
Units
Complete %
Equivalent units
Complete %
Equivalent units
Transferred
58000
100%
58000
100%
58000
Closing WIP
24000
50%
12000
10%
2400
Total
82000
Total
70000
Total
60400
Molding Department Production Report
Equivalent Units
Quantities Physical Units Materials Conversion Costs
Units to be accounted for
Work in process, Jan. 1 = 22,000
Started into production = 60,000
Total units = 82,000
Units accounted for:
Transferred out = 58,000
Work in process, Jan 31 = 24,000
Total units = 82,000
Working & Answer for Cost per Equivalent Units
Cost per Equivalent Units
COST
Material
Conversion Cost
TOTAL
Beginning WIP Inventory Cost
$ 168,360.00
$ 84,834.00
$ 253,194.00
Cost incurred during period
$ 264,940.00
$ 350,046.00
$ 614,986.00
Total Cost to be accounted for
$ 433,300.00
$ 434,880.00
$ 868,180.00
Total Equivalent Units
70000
60400
Cost per Equivalent Units
$ 6.19
$ 7.20
$ 13.39
Costs to be accounted for
Work in process, Jan. 1 = $ 253,194
Started into production = $ 614,986
Total costs = $ 868,180
Cost Reconciliation Schedule
Costs accounted for
Transferred out = 58,000 Equivalent unit x $ 13.39 = $ 776,620
Work in process, Jan. 31
Materials = 12,000 Equivalent unit x $ 6.19 = $ 74,280
Conversion costs = 2400 Equivalent units x $ 7.20 = $ 17,280
Total costs = 776620 + 74280 + 17280 = $ 868,180
Cost to be accounted for
Beginning Work In Progress:
Material
$ 168,360.00
Conversion Cost
$ 84,834.00
$ 253,194.00
Cost incurred during period:
Material
$ 264,940.00
Conversion Cost
$ 350,046.00
$ 614,986.00
Total Cost to be accounted for
$ 868,180.00
Cost accounted for
Ending Work In Progress:
Equivalent Units
Cost per Equivalent Units
Cost accounted for
Material
12000
$ 6.19
$ 74,280.00
Conversion Cost
2400
$ 7.20
$ 17,280.00
$ 91,560.00
Units Transferred:
Equivalent Units
Cost per Equivalent Units
Cost accounted for
Material
58000
$ 6.19
$ 359,020.00
Conversion Cost
58000
$ 7.20
$ 417,600.00
$ 776,620.00
Total Cost accounted for
$ 868,180.00
Reconciliation of Units
A
Opening WIP
22000
B
Introduced
60000
C=A+B
TOTAL
82000
D
Transferred
58000
E=C-D
Closing WIP
24000