Because most of the parts for Waterways drainage and irrigation systems are standard, the company uses a process cost system for most of its manufacturing. Its recent contract to upgrade the city$-$owned soccer fields has increased the demand for a specific type of maintenance$-$free piping and the new joints and coupling units that make the systems so flexible.The parts go through three separate processes: moulding, cutting, and welding. They are then transferred to raw materials inventory, where they are available to the installation units for use in the field.The following information is available for the processing of the piping in the moulding department for the month of July. One metre of piping is considered to be one unit.Beginning work in process inventory:$$Units in process$40,000$Stage of completion for direct materials$100\%$Stage of completion for direct labour and overhead$70\%$Costs in work in process inventoryDirect materials$$138,360$Direct labour$27,564$Overhead$13,782$$$179,706$Units started into production in July$62,000$Units completed and transferred out in July$60,000$Costs added to production during July:Direct materials$$216,690$Direct labour$48,312$Overhead$24,156$$$289,158$Ending work in process inventory:Units in process$42,000$Stage of completion for direct materials$100\%$Stage of completion for direct labour and overhead$40\%$InstructionsUsing the weighted$-$average method, prepare a production cost report for Waterways for the moulding department for the month of July.Show the equivalent units of production for direct materials and conversion costs if Waterways used the FIFO method instead of weighted$-$average.Notes$1$ This item was originally published by the Certified General Accountants Association of Canada $($CGA Canada$),$ as an examination question. Adapted with permission of the Chartered Professional Accountants of Canada, Toronto, Canada. Any changes to the original material are the sole responsibility of the publisher and have not been reviewed or endorsed by the Chartered Professional Accountants of Canada$\mathrm{.}2$ This item was originally published by the Society of Management Accountants of Canada $($CMA Canada$)$ as an examination question. Adapted with permission of the Chartered Professional Accountants of Canada, Toronto, Canada. Any changes to the original material are the sole responsibility of the publisher and have not been reviewed or endorsed by the Chartered Professional Accountants of Canada$3$ This item was originally published by the Society of Management Accountants of Canada $($CMA Canada$)$ as an examination question. Adapted with permission of the Chartered Professional Accountants of Canada, Toronto, Canada. Any changes to the original material are the sole responsibility of the publisher and have not been reviewed or endorsed by the Chartered Professional Accountants of Canada$\mathrm{.}4$ This item was originally published by the Certified General Accountants Association of Canada $($CGA Canada$)$ as an examination question. Adapted with permission of the Chartered Professional Accountants of Canada, Toronto, Canada. Any changes to the original material are the sole responsibility of the publisher and have not been reviewed or endorsed by the Chartered Professional Accountants of Canada$\mathrm{.}5$ This item was originally published by the Certified General Accountants Association of Canada $($CGA Canada$)$ as an examination question. Adapted with permission of the Chartered Professional Accountants of Canada, Toronto, Canada. Any changes to the original material are the sole responsibility of the publisher and have not been reviewed or endorsed by the Chartered Professional Accountants of Canada$\mathrm{.}6$ This item was originally published by the Society of Management Accountants of Canada $($CMA Canada$)$ as an examination question. Adapted with permission of the Chartered Professional Accountants of Canada, Toronto, Canada. Any changes to the original material are the sole responsibility of the publisher and have not been reviewed or endorsed by the Chartered Professional Accountants of Canada$\mathrm{.}7$ This item was originally published by the Society of Management Accountants of Canada $($CMA Canada$)$ as an examination question. Adapted with permission of the Chartered Professional Accountants of Canada, Toronto, Canada. Any changes to the original material are the sole responsibility of the publisher and have not been reviewed or endorsed by the Chartered Professional Accountants of Canada$\mathrm{.}8$ This item was originally published by the Certified General Accountants Association of Canada $($CGA Canada$)$ as an examination question. Adapted with permission of the Chartered Professional Accountants of Canada, Toronto, Canada. Any changes to the original material are the sole responsibility of the publisher and have not been reviewed or endorsed by the Chartered Professional Accountants of Canada.