Problem: 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%
Instructions:
Q1. Prepare a production cost report using the weighted-average method.
Q2. Show the equivalent units for materials and conversion costs if used FIFO instead of weighted-average.