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 Package 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 22,000 Stage of completion for materials 80% Stage of completion for labor and overhead 30%

Costs in work in process inventory: Materials $168,360 Labor 67,564 Overhead 17,270 Total costs in beginning work in process $253,194

Units started into production in January 60,000 Units completed and transferred in January 58,000

Costs added to production: Materials $264,940 Labor 289,468 Overhead 60,578 Total costs added into production in January $614,986

Work in process ending: Units in process 24,000 Stage of completion for materials 50% Stage of completion for labor and overhead 10%

Collapse question part (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

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

Answer 1.
Weighted Average Method
WATERWAYS CORPORATION
MOLDING DEPARTMENT PRODUCTION REPORT
For the Month ended Jan 31, 2017
Particulars		Equivalent Units
	Physical Units	Materials	Conversion Costs
Units to be accounted for
Work in process - Beginning	22,000
Started into production	60,000
Total units	82,000
Units accounted for
Transferred out	58,000	58,000	58,000
Work in process, Ending (82,000 - 58,000)	24,000	12,000	2,400
(50% materials, 10% conversion costs)
Equivalent units accounted for	82,000	70,000	60,400
Costs
Unit costs	Materials	Conversion	Total
WIP, Beginning	168,360	84,834	253,194
Costs incurred in November	264,940	350,046	614,986
Total Costs	433,300	434,880	868,180
Equivalent units	70,000	60,400
Costs per Equivalent Units	6.19	7.20	13.39
Cost Assignment	Materials	Conversion	Total
Good Units completed & Transferred out (58,000 Units)
Cost of goods completed & Transferred out	359,020	417,600	776,620
Work in Process - ending Inventory - 24,000 Units	74,280	17,280	91,560
Total Cost accounted for	433,300	434,880	868,180
Cost Reconciliation Schedule
Cost Accounted For:
Transferred Out			776,620
WIP - Jan 31
Materials		74,280
Conversion Costs		17,280	91,560
Total Costs			868,180