Because most of the parts for its irrigation systems are standard, Waterways handles the majority of its manufacturing as a process cost system. There are multiple process departments. Three of these departments are the Molding, Cutting, and Welding departments. All items eventually end up in the Package department which prepares items for sale in kits or individually.

The following information is available for the Molding department for January.

Work in process beginning:

Units in process 22,000

Stage of completion for materials 80%

Stage of completion for labor and overhead 30%

Costs in work in process inventory:

Materials $168,360

Labor 67,564

Overhead 17,270 Total costs in beginning work in process. $253,194

Units started into production in January 60,000

Units completed and transferred in January 58,000

Costs added to production:

Materials $264,940

Labor 289,468

Overhead 60,578

Total costs added into production in January $614,986

Work in process ending:

Units in process 24,000

Stage of completion for materials 50%

Stage of completion for labor and overhead. 10%

WATERWAYS CORPORATION Molding Department Production Report Physical Units Equivalent Units Conversion Materials Costs Quantities Units to be accounted for Work in process, Jan. 1 Started into production Total units Units accounted for Transferred out Work in process, Jan 31 Total units Materials Conversion Costs Total Costs Unit costs Costs in January Equivalent units Unit costs Costs to be accounted for Work in process, Jan. 1 Started into production Total costs Cost Reconciliation Schedule Costs accounted for Transferred out Work in process, Jan. 31 Materials Conversion costs Total costs