Waterway Enterprises is aptly named because of its signature item-chewing gum! The owners started the business years ago when no existing gum had the right flavor and texture combination. After years of perfecting the process, they had a finely tuned operation. This year, Waterway's main processing department reported the following activity and costs. Units in beginning WIP Inventory Beginning WIP Inventory degree of completion Costs in beginning WIP Inventory New units started Costs added to WIP Inventory this period Units completed Units in ending WIP Inventory Ending WIP Inventory degree of completion Units 400 23,200 22,500 1,100 DM 100% $240 $6,960 100% Conversion Costs 30% $425 $4,608 60% All DM resources are added to Waterway's processing department at the beginning of processing. Conversion costs are added evenly hroughout the process.
Waterway Enterprises is aptly named because of its signature item-chewing gum! The owners started the business years ago when no existing gum had the right flavor and texture combination. After years of perfecting the process, they had a finely tuned operation. This year, Waterway's main processing department reported the following activity and costs. Units in beginning WIP Inventory Beginning WIP Inventory degree of completion Costs in beginning WIP Inventory New units started Costs added to WIP Inventory this period Units completed Units in ending WIP Inventory Ending WIP Inventory degree of completion Units 400 23,200 22,500 1,100 DM 100% $240 $6,960 100% Conversion Costs 30% $425 $4,608 60% All DM resources are added to Waterway's processing department at the beginning of processing. Conversion costs are added evenly hroughout the process.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Waterway Enterprises is aptly named because of its signature item-chewing gum! The owners started the business years ago when
no existing gum had the right flavor and texture combination. After years of perfecting the process, they had a finely tuned operation.
This year, Waterway's main processing department reported the following activity and costs.
Units in beginning WIP Inventory
Beginning WIP Inventory degree of completion
Costs in beginning WIP Inventory
New units started
Costs added to WIP Inventory this period
Units completed
Units in ending WIP Inventory
Ending WIP Inventory degree of completion
Units
400
23,200
22,500
1,100
DM
100%
$240
$6,960
100%
Conversion Costs
30%
$425
$4,608
60%
All DM resources are added to Waterway's processing department at the beginning of processing. Conversion costs are added evenly
throughout the process.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F81c37663-1cc8-4c77-98b2-6edced967989%2F10975e45-8614-43cb-bcac-090c0fe72862%2Fesv11nd_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Waterway Enterprises is aptly named because of its signature item-chewing gum! The owners started the business years ago when
no existing gum had the right flavor and texture combination. After years of perfecting the process, they had a finely tuned operation.
This year, Waterway's main processing department reported the following activity and costs.
Units in beginning WIP Inventory
Beginning WIP Inventory degree of completion
Costs in beginning WIP Inventory
New units started
Costs added to WIP Inventory this period
Units completed
Units in ending WIP Inventory
Ending WIP Inventory degree of completion
Units
400
23,200
22,500
1,100
DM
100%
$240
$6,960
100%
Conversion Costs
30%
$425
$4,608
60%
All DM resources are added to Waterway's processing department at the beginning of processing. Conversion costs are added evenly
throughout the process.
![Complete Steps 1-5 of the template for Waterway Enterprises this year using the FIFO method of process costing, clearly
labeling the following. (Round cost per equivalent unit to 2 decimal places, e.g. 15.25.)
·
●
Equivalent units of production for both DM and conversion costs.
The cost per equivalent unit for both DM and conversion costs.
The total cost of units completed and the total cost of units in ending WIP Inventory.
Total equivalent units of work done
Cost per equivalent unit
Total cost of units completed
Cost of units in ending WIP Inventory
$
$
$
DM
$
Conversion Cost](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F81c37663-1cc8-4c77-98b2-6edced967989%2F10975e45-8614-43cb-bcac-090c0fe72862%2Fs69l9ic_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Complete Steps 1-5 of the template for Waterway Enterprises this year using the FIFO method of process costing, clearly
labeling the following. (Round cost per equivalent unit to 2 decimal places, e.g. 15.25.)
·
●
Equivalent units of production for both DM and conversion costs.
The cost per equivalent unit for both DM and conversion costs.
The total cost of units completed and the total cost of units in ending WIP Inventory.
Total equivalent units of work done
Cost per equivalent unit
Total cost of units completed
Cost of units in ending WIP Inventory
$
$
$
DM
$
Conversion Cost
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