Question

Superior Micro Products uses the weighted-average method in its process costing system. Data for the Assembly Department for May appear below:

	Materials		Labor		Overhead
Work in process, May 1	$	11,600	$	17,361	$	80,664
Cost added during May	$	70,450	$	11,574	$	53,776
Equivalent units of production		1,000		900		800

Required:

Compute the cost per equivalent unit for materials, labor, overhead, and in total. (Round your answers to 2 decimal places.)

	Materials Labor Overhead Total Cost per equivalent unit

Maria Am Corporation uses the weighted-average method in its process costing system. The Baking Department is one of the processing departments in its strudel manufacturing facility. In June in the Baking Department, the cost of beginning work in process inventory was $4,810, the cost of ending work in process inventory was $1,130, and the cost added to production was $25,150.

Required:  

Prepare a cost reconciliation report for the Baking Department for June.

	Baking Department Cost Reconciliation Costs to be accounted for: Total cost to be accounted for $0 Costs accounted for as follows: Total cost accounted for $0

Answer 1

1.

Answer:

	Material	Labor	Overhead	Total
Cost per equivalent unit	82.05	32.15	168.05	282.25

Calculation

Particulars	Material	Labor	Overhead	Total
Opening work-in-progress cost	11,600	17,361	80,664
Cost added in the process	70,450	11,574	53,776
Total cost	82,050	28,935	134,440	245,425
Equivalent units	1,000	900	800	2,700
Cost per equivalent unit (Total cost / equivalent units)	82.05	32.15	168.05	282.25

2.

  Answer:

Baking Department
Cost Reconciliation
Cost to be accounted for:
Cost of beginning work in process inventory	4,810
Cost added to production during the period	25,150
Total cost to be accounted for:	29,960
Costs accounted for as follows:
Cost of ending work in process inventory	1,130
Cost of units completed and transferred out	28,830
Total cost accounted for:	29,960

Explanation

Cost of beginning work in process inventory + Cost added to production during the period = Cost of ending work in process inventory + Cost of units completed and transferred out

So, 4,810 + 25,150 = 1,130 + 28,830