Question

Superior Micro Products uses the weighted-average method in its process costing system. During January, the Delta Assembly Department completed its processing of 26,400 units and transferred them to the next department. The cost of beginning work in process inventory and the costs added during January amounted to $663,852 in total. The ending work in process inventory in January consisted of 2,100 units, which were 80% complete with respect to materials and 60% complete with respect to labor and overhead. The costs per equivalent unit for the month were as follows:

	Materials			Labor			Overhead
Cost per equivalent unit	$	13.20		$	3.80		$	6.80

Required:

1. Compute the equivalent units of materials, labor, and overhead in the ending work in process inventory for the month.

Answer 1

Solution

Equivalent units of production for ending inventory

1,680

1,260.0

1,260

Working

Statement of Equivalent Units(Weighted average)
		Material		Labor		Overhead
	Units			Complete %	Equivalent units	Complete %	Equivalent units
Closing WIP	2,100	80%	1,680.0	60%	1,260.0	60%	1,260
Total	28,500		1,680	Total	1,260.0	Total	1,260