Superior Micro Products uses the weighted-average method in its process costing

Question

Superior Micro Products uses the weighted-average method in its process costing system. During January the Delta Assembly Department completed its processing of 26,600 units and transferred them to the next department. The cost of beginning inventory and the costs added during January amounted to $759,469 in total. The ending inventory in January consisted of 2,700 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 Materials Labor $14.10 4.90 Cost per equivalent unit $ 7.90 Required 1. Compute the equivalent units of materials, labor, and overhead in the ending inventory for the month. Materials Overhead Equivalent units of production 2. Compute the cost of ending inventory and of the units transferred to the next department for January. Total Cost of ending work in process inventory Cost of units completed and transferred out 3. 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 inventory and costs added during the month.) Cost Reconciliation Total cost to be accounted for Costs accounted for as follows Total cost accounted for

Explanation / Answer

Answers

EUP - Weighted Average Method

Units

% Material

EUP Materials

% Conversion

EUP - Conversion

Units TRANSFERRED

26,600

100%

26,600

100%

26,600

Units of ENDING WIP

2,700

70%

1,890

50%

1,350

Equivalent Units of Production

28,490

27,950

-----Cost of ending WIP = (1890 units x $ 14.10) + (1350 units x $ 4.90) + (1350 units x $7.9)

= 26649 + 6615 + 10665 = $ 43,929

----Cost of units completed & transferred out = 26600 units x ($14.10 + $4.90 + $ 7.90)

= 26600 x $ 26.90 = $ 715,540

Total Cost to be accounted for

$                759,469.00

Costs accounted for as follows:

Cost of units completed and transferred out

$                715,540.00

Cost of ending WIP

$                  43,929.00

Total cost accounted for

$                759,469.00

EUP - Weighted Average Method

Units

% Material

EUP Materials

% Conversion

EUP - Conversion

Units TRANSFERRED

26,600

100%

26,600

100%

26,600

Units of ENDING WIP

2,700

70%

1,890

50%

1,350

Equivalent Units of Production

28,490

27,950

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.