Question

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 22,500      Stage of completion for materials 80%      Stage of completion for labor and overhead 30%      Costs in work in process inventory:        Materials $168,920        Labor 66,970        Overhead 17,310 Total costs in beginning work in process $253,200 Units started into production in January 59,500 Units completed and transferred in January 58,500 Costs added to production:      Materials $270,845      Labor 287,465      Overhead 60,290 Total costs added into production in January $618,600 Work in process ending:      Units in process 23,500      Stage of completion for materials 50%      Stage of completion for labor and overhead 10%

(a) 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 Equivalent Units Quantities Physical Units Materials Conversion Costs Units to be accounted for    Work in process, Jan. 1    Started into production       Total units Units accounted for    Transferred out    Work in process, Jan. 31       Total units 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

(a)

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
				Equivalent Units
Quantities		Physical Units		Materials		Conversion Costs
Units to be accounted for
Work in process, Jan. 1		22500
Started into production		59500
Total units		82000
Units accounted for
Transferred out		58500		58500		58500
Work in process, Jan. 31		23500		11750		2350
Total units		82000		70250		60850
Costs				Materials		Conversion Costs		Total
Unit costs
Costs in January				$439765		$432035		$871800
Equivalent units				70250		60850
Unit costs				$6.26		$7.1		$13.36
Costs to be accounted for
Work in process, Jan. 1								$253200
Started into production								618600
Total costs								$871800
Cost Reconciliation Schedule
Costs accounted for
Transferred out								$781560
Work in process, Jan. 31
Materials				73555
Conversion costs						16685		90240
Total costs								$871800