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 $698,458 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 $ 13.80 Labor Overhead $ 3.80 $ 8.10 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

Answer 1

1) Equivalent unit

	Material	Labor	Overhead
Equivalent unit	3700*60% = 2220	3700*40% = 1480	1480

2) Cost of ending WIP

	Material	Labor	Overhead	Total
Cost of ending WIP	2220*13.80 = 30636	1480*3.8 = 5624	1480*8.1 = 11988	48248

3) Cost of unit transferred out

	Material	Labor	Overhead	Total
Cost of unit transferred out	25300*13.80 = 349140	25300*3.8 = 96140	204930	650210

4) Cost reconciliation

Total Cost to be accounted for	698458
Cost accounted as
Unit transferred out Cost	650210
Cost of ending WIP	48248
Total cost accounted as	698458