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% |