Waterways Continuing Problem 17 (Part Level Submission) Equivalent Units Physica

Question

Waterways Continuing Problem 17 (Part Level Submission)

Equivalent Units

Physical
Units

Materials

Conversion
Costs

Materials

Conversion
Costs

Total

B.

Prepare the journal entry to move the month’s production to the Cutting Department

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%

Explanation / Answer

Journal entry

Work in progress Cutting department Debit 776620

Work in progress Molding department credit 776620

Weighted average cost Beggining units 22000 Transferred out 58,000 Started intro production 60000 Ending units 24,000 Units accounted for 82000 82000 Equivalent units Material Conversion cost Units transferred                      A 58000 58000 Ending Units 24,000 24,000 Completion 50% 10% B 12000 2400 Total units 70000 60400 Cost per equivalent units Particulars Material Conversion cost total As at beginning 168360 84834 253194 Added during the month 264940 350046 614986 Cost to be accounted for 433300 434880 868180 Total eqivalent units 70000 60400 Cost per equivalent unit 6.19 7.20 13.39 Cost per equivalent unit = Cost to be accounted for / Total equivalent units

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