| 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 Packaging Department, which prepares items for sale in kits or individually. Please show work |
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 Packaging Department, which prepares items for sale in kits or individually. The following information is available for the Molding department for January. 21,700 80% 30% Work in process beginning: Units in process Stage of completion for materials Stage of completion for labor and overhead Costs in work in process inventory: Materials Labor Overhead Total costs in beginning work in process $167,110 67,700 17,350 $252,160 60,000 58,300 Units started into production in January Units completed and transferred in January Costs added to production: Materials Labor Overhead Total costs added into production in January Work in process ending: Units in process Stage of completion for materials Stage of completion for labor and overhead $267,590 302,896 60,790 $631,276 23,400 50% 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 21700 Started into production 60000 Total units 81700 Units accounted for Transferred out 58300 23400 58300 11700 58300 2340 Work in process, Jan. 31 Total units 81700 70000 60640 Materials Conversion Costs Total Costs Unit costs Costs in January 167,110 85050 $ 252160 Equivalent units 70000 60640 Unit costs 2.38 1. 403 $ 3.78 .78 Costs to be accounted for Work in process, Jan. 1 167110 Started into production 85050 Total costs 252160 Cost Reconciliation Schedule Costs accounted for Transferred out Work in process, Jan. 31 Materials Conversion costs Total costs Show the equivalent units for materials and conversion costs if Waterways used FIFO instead of weighted average. Equivalent Units Materials Conversion Physical Units Units accounted for Completed and transferred out Work in process, Jan. 1 Started and completed in Jan. Work in process, Jan. 31 Total units
