Question

Superior Micro Products uses the weighted-average method in its process costing system. During January, the Delta Assembly Department completed its processing of 26,700 units and transferred them to the next department. The cost of beginning work in process inventory and the costs added during January amounted to $675,255 in total. The ending work in process inventory in January consisted of 2,100 units, which were 50% complete with respect to materials and 30% complete with respect to labor and overhead. The costs per equivalent unit for the month were as follows: Materials Labor Overhead Cost per equivalent unit $ 13.50 $ 3.40 $ 7.60 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.)

Answer 1

1
	Materials	Labor	Overhead
Units in ending work in process inventory	2100	2100	2100
Percent completed	50%	30%	30%
Equivalent units in the ending work in process inventory	1050	630	630
2
	Materials	Labor	Overhead	Total
Equivalent units	1050	630	630
Cost per equivalent unit	13.5	3.4	7.6
Cost of ending work in process inventory	14175	2142	4788	21105
3
	Materials	Labor	Overhead	Total
Units transferred to the next department	26700	26700	26700
Cost per equivalent unit	13.5	3.4	7.6
Cost of units completed and transferred out	360450	90780	202920	654150
4
Cost Reconciliation
Total cost to be accounted for	675255
Costs accounted for as follows:
Cost of ending work in process inventory	21105
Cost of units completed and transferred out	654150
Total cost accounted for	675255