Superior Micro Products uses the weighted-average method of process costing. During January, the Assembly Department completed its processing of 25,600 units and transferred them to the nex department. The cost of beginning work in process inventory and the costs added during January totaled $706,840. The ending work in process inventory in January consisted of 3,300 units, which were 70% complete for materials and 50% complete for labor and overhead. The costs per equivalent unit for the month were as follows: Cost per equivalent unit Required 1 Required 2 Materials $14.00 Required: For January: 1. Compute the equivalent units of materials, labor, and overhead in the ending work in process inventory. 2. Compute the cost of ending work in process inventory for materials, labor, overhead, and in total. 3. Compute the cost of the units transferred to the next department for materials, labor, overhead, and in total. 4. Prepare a cost reconciliation report. Complete this question by entering your answers in the tabs below. Total cost to be accounted for Costs accounted for as follows: Labor $5.20 Required 3 Required 4 Cost Reconciliation Prepare a cost reconciliation report. Note: You will not be able to break the cost to be accounted for into the cost of beginning work in process inventory and costs added during the month. Cost of ending work in process inventory Cost of units completed and transferred out Total cost accounted for Overhead $ 6.40 $ 03 0
Superior Micro Products uses the weighted-average method of process costing. During January, the Assembly Department completed its processing of 25,600 units and transferred them to the nex department. The cost of beginning work in process inventory and the costs added during January totaled $706,840. The ending work in process inventory in January consisted of 3,300 units, which were 70% complete for materials and 50% complete for labor and overhead. The costs per equivalent unit for the month were as follows: Cost per equivalent unit Required 1 Required 2 Materials $14.00 Required: For January: 1. Compute the equivalent units of materials, labor, and overhead in the ending work in process inventory. 2. Compute the cost of ending work in process inventory for materials, labor, overhead, and in total. 3. Compute the cost of the units transferred to the next department for materials, labor, overhead, and in total. 4. Prepare a cost reconciliation report. Complete this question by entering your answers in the tabs below. Total cost to be accounted for Costs accounted for as follows: Labor $5.20 Required 3 Required 4 Cost Reconciliation Prepare a cost reconciliation report. Note: You will not be able to break the cost to be accounted for into the cost of beginning work in process inventory and costs added during the month. Cost of ending work in process inventory Cost of units completed and transferred out Total cost accounted for Overhead $ 6.40 $ 03 0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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Transcribed Image Text:Superior Micro Products uses the weighted-average method of process costing. During January, the Assembly Department completed its processing of 25,600 units and transferred them to the next
department. The cost of beginning work in process inventory and the costs added during January totaled $706,840. The ending work in process inventory in January consisted of 3,300 units, which
were 70% complete for materials and 50% complete for labor and overhead. The costs per equivalent unit for the month were as follows:
Cost per equivalent unit
Required 1 Required 2
Materials
$ 14.00
Required:
For January:
1. Compute the equivalent units of materials, labor, and overhead in the ending work in process inventory.
2. Compute the cost of ending work in process inventory for materials, labor, overhead, and in total.
3. Compute the cost of the units transferred to the next department for materials, labor, overhead, and in total.
4. Prepare a cost reconciliation report.
Complete this question by entering your answers in the tabs below.
Total cost to be accounted for
Costs accounted for as follows:
Labor
$5.20
Required 3 Required 4
Cost Reconciliation
Prepare a cost reconciliation report.
Note: You will not be able to break the cost to be accounted for into the cost of beginning work in process inventory and costs
added during the month.
Cost of ending work in process inventory
Cost of units completed and transferred out
Total cost accounted for
Overhead
$6.40
$
0:
O: O
0
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