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		21,400
Stage of completion for materials		80%
Stage of completion for labor and overhead		30%
Costs in work in process inventory:
Materials		$166,710
Labor		66,960
Overhead		17,210
Total costs in beginning work in process		$250,880
Units started into production in January		59,600
Units completed and transferred in January		57,700
Costs added to production:
Materials		$253,551
Labor		268,927
Overhead		61,110
Total costs added into production in January		$583,588
Work in process ending:
Units in process		23,300
Stage of completion for materials		50%
Stage of completion for labor and overhead		10%

Prepare a production cost report for Waterways using the weighted-average method. (Round unit costs to 2 decimal places, e.g. 2.25.) WATERWAYS CORPORATION Molding Department Production Report For the Quarter Ended January 31For the Month of JanuaryJanuary 31 Costs Materials Conversion Costs Total 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 $

Answer 1

• 	WATERWAYS CORPORATION
  Molding Department Production Report
  for the month of January
  					Equivalent units
  				Physical	Materials	Conversion
  Quantities				units		costs
  Units to be accounted for
  Work in process ,Jan 1				21,400
  Started into production				59,600
  Total units				81,000
  Units accounted for
  Transferred out				57,700	57,700	57,700
  Work in process ,Jan 31				23,300	11650	2330
  total units				81,000	69,350	60,030
  Costs					Materials	Conversion	total
  						costs
  Unit costs
  costs in January					420261	414207	834468
  Equivalent units					69,350	60,030
  Units costs					6.06	6.9	12.96
  costs to be accounted for
  work in process,Jan 1							250,880
  Started into production							583,588
  total costs							834,468
  Cost reconciliation Schedule
  Costs accounted for
  Transferred out							747792
  Work in process,Jan 31
  Materials						70599
  Conversion costs						16077	86676
  total costs							834468