66 Chapter 4 EXERCISE 4-12 Cost Assignment; Cost Reconciliation-Weighted-Average Method [LO4-2, L04-4, LO4-5] Superior Micro Products uses the weighted-average method in its process costing system. During January, the Delta Assembly Department completed its processing of 25,000 units and transferred them to the next department. The cost of beginning inventory and the costs added during January amounted to $599,780 in total. The ending inventory in January consisted of 3,000 units, which were 80% complete with respect to materials and 60% complete with respect to labor and over- head. The costs per equivalent unit for the month were as follows: Materials Labor Overhead Cost per equivalent unit $12.50 $3.20 $6.40 Required: 1. Compute the equivalent units of materials, labor, and overhead in the ending inventory for the month. 2. Compute the cost of ending inventory and of the units transferred to the next department for January. 3. Prepare a cost reconciliation for January. (Note: You will not be able to break the cost to be accounted for into the cost of beginning inventory and costs added during the month.) nect
66 Chapter 4 EXERCISE 4-12 Cost Assignment; Cost Reconciliation-Weighted-Average Method [LO4-2, L04-4, LO4-5] Superior Micro Products uses the weighted-average method in its process costing system. During January, the Delta Assembly Department completed its processing of 25,000 units and transferred them to the next department. The cost of beginning inventory and the costs added during January amounted to $599,780 in total. The ending inventory in January consisted of 3,000 units, which were 80% complete with respect to materials and 60% complete with respect to labor and over- head. The costs per equivalent unit for the month were as follows: Materials Labor Overhead Cost per equivalent unit $12.50 $3.20 $6.40 Required: 1. Compute the equivalent units of materials, labor, and overhead in the ending inventory for the month. 2. Compute the cost of ending inventory and of the units transferred to the next department for January. 3. Prepare a cost reconciliation for January. (Note: You will not be able to break the cost to be accounted for into the cost of beginning inventory and costs added during the month.) nect
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Exercise 4-12
![66
Chapter 4
EXERCISE 4-12 Cost Assignment; Cost Reconciliation-Weighted-Average Method [LO4-2, L04-4,
LO4-5]
Superior Micro Products uses the weighted-average method in its process costing system. During
January, the Delta Assembly Department completed its processing of 25,000 units and transferred
them to the next department. The cost of beginning inventory and the costs added during January
amounted to $599,780 in total. The ending inventory in January consisted of 3,000 units, which
were 80% complete with respect to materials and 60% complete with respect to labor and over-
head. The costs per equivalent unit for the month were as follows:
Materials
Labor
Overhead
Cost per equivalent unit
$12.50
$3.20
$6.40
Required:
1.
Compute the equivalent units of materials, labor, and overhead in the ending inventory for the
month.
2. Compute the cost of ending inventory and of the units transferred to the next department for
January.
3. Prepare a cost reconciliation for January. (Note: You will not be able to break the cost to be
accounted for into the cost of beginning inventory and costs added during the month.)
nect](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F85e39e9b-3b6a-4fb6-8406-b63a567ff03b%2F7211c63e-af17-49c0-8568-c25fcfc91b2d%2Fvgp0fic.jpeg&w=3840&q=75)
Transcribed Image Text:66
Chapter 4
EXERCISE 4-12 Cost Assignment; Cost Reconciliation-Weighted-Average Method [LO4-2, L04-4,
LO4-5]
Superior Micro Products uses the weighted-average method in its process costing system. During
January, the Delta Assembly Department completed its processing of 25,000 units and transferred
them to the next department. The cost of beginning inventory and the costs added during January
amounted to $599,780 in total. The ending inventory in January consisted of 3,000 units, which
were 80% complete with respect to materials and 60% complete with respect to labor and over-
head. The costs per equivalent unit for the month were as follows:
Materials
Labor
Overhead
Cost per equivalent unit
$12.50
$3.20
$6.40
Required:
1.
Compute the equivalent units of materials, labor, and overhead in the ending inventory for the
month.
2. Compute the cost of ending inventory and of the units transferred to the next department for
January.
3. Prepare a cost reconciliation for January. (Note: You will not be able to break the cost to be
accounted for into the cost of beginning inventory and costs added during the month.)
nect
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