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 25,300 units and transferred them to the next department. The cost of beginning work in process inventory and the costs added during January amounted to $635,976 in total. The ending work in process inventory in January consisted of 3,700 units, which were 60% complete with respect to materials and 40% complete with respect to labor and overhead. The costs per equivalent unit for the month were as follows: Materials Labor Overhead 12.60 3.70 $7.10 Cost per equivalent unit 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.) Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Compute the equivalent units of materials, labor, and overhead in the ending work in process inventory for the month Materials Labor Overhead Equivalent units

Explanation / Answer

Material Labor Overhead 1 Closing Units 3700 3700 3700 A Completion 60% 40% 40% B Equivalent Units 2220 1480 1480 A*B Material Labor Overhead 2 Equivalent Units 2220 1480 1480 A Cost Per Equivalent Units 12.60 3.70 7.10 B Cost of Ending WIP Inventory 27972 5476 10508 A*B 3 Material Labor Overhead Units Completed & Transferred 25300 25300 25300 A Cost Per Equivalent Units 12.60 3.70 7.10 B Cost of Units Completed & Transferred 318780 93610 179630 A*B D Units Costs Units Completed & Transferred 25300 592020 Add: Closing Stock Value 3700 43956 Total Cost during the year 635976

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