SOLUTION
Chapter 3 Waterways Continuing Problem
(a) Production Report—Weighted-Average
Method
Equivalent Units
Physical
Units
Materials
Conversion
Quantities
Units to be accounted for:
Work in process, Jan 1 (80% materials, 30% conversion) ……………
22,000
Started into production ……………………………………………………………
60,000
Total units ……………………………………………………………………………….
82,000
Units accounted for:
Costs
Unit costs
Materials
Conversion
Costs
Total
Costs in January* …………………………………………………………………..
(a)
$433,300
$434,880
$868,180
Equivalent units ……………………………………………………………………..
(b)
Unit costs [(a)/(b)] ………………………………………………………………….
Costs to be accounted for
Work in process, January 1 ………………………………………………………
$253,194
Started into production …………………………………………………………….
Total costs ……………………………………………………………………………
$868,180
Conversion costs—$67,564 + $17,270 + $289,468 + $60,578
Cost Reconciliation Schedule
Costs accounted for
Transferred out (58,000 X $13.39) ……………………………………………
$776,620
Work in process, Jan 31
Materials (12,000 X $6.19) ……………………………………………………..
Conversion (2,400 X $7.20) ……………………………………………………
Total costs
$868,180
Transferred out ………………………………………………………………………
58,000
Work in process, Jan 31 (50% materials, 10% conversion) …………..
24,000
Total units ……………………………………………………………………………….
82,000
*(b) Equivalent Units—FIFO Method
Equivalent Units
Physical
Units
Materials
Conversion
Units accounted for
Completed and transferred out
Work in process, January 1 (20% materials, 70% conversion) …….
22,000
4,400
15,400
Started and completed in January …………………………………………..
36,000
36,000
Work in process, Jan 31 (50% materials, 10% conversion) …………..
24,000