ezto.mheducation.com | Chapter 4 home work Clonex Uses A Process value 10.00 poi
ID: 2540081 • Letter: E
Question
ezto.mheducation.com | Chapter 4 home work Clonex Uses A Process value 10.00 points Superior Micro Products uses the weighted-average method in its process costing system. During January, the Delta Assembly Department completed its processing of 26,400 units and transferred them to the next department. The cost of beginning inventory and the costs added during January amounted to $680,090 in total. The ending inventory in January consisted of 3,400 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 $12.50 Labor 4.10 Overhead $ 7.30 Cost per equivalent unit Required: 1. Compute the equivalent units of materials, labor, and overhead in the ending inventory for the month. Materials Labor 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 forExplanation / Answer
Answer
Total
Material (70%)
Labor (50%)
Overhead (50%)
Ending Inventory (units)
3400
2380
1700
1700
Working
Material
Labor
Overhead
Total
Equivalent Unit
2380
1700
1700
Cost per Equivalent unit
$12.5
$4.1
$7.3
Total cost
$29750
$6970
$12410
$49130
Material
Labor
Overhead
Total
Equivalent Unit
26400
26400
26400
Cost per Equivalent unit
$12.5
$4.1
$7.3
Total cost
$330000
$108240
$192720
$630960
Answer
Cost of ending work in process inventory
$49130
Cost of units completed and transferred out
$630960
Total cost to be accounted for
$680090
Cost accounted for as follows:
Ending work in process
$49130
Units transferred
$630960
Total cost accounted for
$680090
Total
Material (70%)
Labor (50%)
Overhead (50%)
Ending Inventory (units)
3400
2380
1700
1700
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