Question

Waterways Problem 03

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.

Work in process beginning:
Units in process		23,000
Stage of completion for materials		80%
Stage of completion for labor and overhead		30%
Costs in work in process inventory:
Materials		$169,100
Labor		67,890
Overhead		17,360
Total costs in beginning work in process		$254,350
Units started into production in January		60,000
Units completed and transferred in January		57,500
Costs added to production:
Materials		$263,640
Labor		292,815
Overhead		60,300
Total costs added into production in January		$616,755
Work in process ending:
Units in process		25,500
Stage of completion for materials		50%
Stage of completion for labor and overhead		10%

Cost Reconciliation Schedule
Costs accounted for
Transferred out								$
Work in process, Jan. 31
Materials
Conversion costs
Total costs								$

Answer 1

	Physcial units	Materials	Conversion
Work in Process Beginning	23000
Started during the period	60000
To account for	83000
Units transferred to finished goods	57500	57500	57500
Work in Process Ending	25500	12750	2550
Accounted for	83000
Equivalent units		70250	60050
	Materials	Conversion	Total
Cost of Beginning Work in Process	$         1,69,100	$          85,250	$          2,54,350
Cost added during the period	$         2,63,640	$       3,53,115	$          6,16,755
Total Cost	$         4,32,740	$       4,38,365	$          8,71,105
Equivalent units of Production	70250	60050
Cost per equivalent unit	$                 6.16	$              7.30	$               13.46
	Materials	Conversion	Total
Ending work in Process Inventory
Equivalent units of Production	12750	2550
Cost per equivalent unit	$                 6.16	$              7.30
Cost of Ending work in Process Inventory	$            78,540	$          18,615	$             97,155
Units Completed and transferred out
Units transferred to next department	57500	57500
Cost per equivalent unit	$                 6.16	$              7.30
Cost of units transferred out	$         3,54,200	$       4,19,750	$          7,73,950
Reconciliation
Costs to be accounted for :
Cost of beginning work in process inventory	$         2,54,350
Costs added to the production during the year	$         6,16,755
Total Costs to be accounted for	$         8,71,105
Cost of Ending work in Process Inventory	$            97,155
Cost of units transferred out	$         7,73,950
Total Costs accounted for	$         8,71,105