Because most of the parts for its irrigation systems are standard, Waterways han
ID: 2545327 • 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.)
Units to be accounted for Work in process, Jan. 1 253194
Started into production 60000
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
Explanation / Answer
UNITS TO ACCOUNT FOR: Beginning Work in Process units 22,000 Add: Units Started in Process 60,000 Total Units to account for: 82,000 UNITS TO BE ACCOUNTED FOR: Units started and completed 58,000 Ending Work in Process 24,000 Total Units to be accounted for: 82,000 Equivalent Units: Material Cost Conversion % Completion Units % Completion Units Units started and completed 100% 58,000 100% 58,000 Ending Work in Process 50% 12,000 10% 2,400 Total Equivalent units 70,000 60,400 TOTAL COST TO ACCOUNT FOR: Material Conversion Beginning work in Process 168,360 84,834 Cost Added during May 264,940 350,046 Total Cost to account for: 433,300 434,880 Total Cost to account for: 868,180 COST PER EQUIVALENT UNIT: Material Conversion Total cost added during the year 433,300 434,880 Equivalent Units 70,000 60,400 Cost per Equivalent unit 6.19 7.2 TOTAL COST ACCOUNTED FOR: Units started and Transferred out (58000 units) Equivalent unit Cost per EU Total Cost Material 58,000 6.19 359020 Conversion Cost 58,000 7.2 417600 Total Cost of Units completed and transferred out: 776620 Ending Work in process (24000 units) Equivalent unit Cost per EU Total Cost Material 12,000 6.19 74280 Conversison Cost 2,400 7.2 17280 Total cost of Ending Work in process: 91,560 RECONCILIATION STATEMENT: Cost to be accounted fro: Cost of Beginning WIP 253194 Cost added in production 614986 Total cost to be accounted 868180 Cost Accounted for: Cost of units transferred out 776620 Ending WIP 91560 Total cost accounted for 868180