Because most of the parts for its irrigation systems are sta

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

24,000

   Stage of completion for materials

80%

   Stage of completion for labor and overhead

30%

   Costs in work in process inventory:

      Materials

$172,460

      Labor

68,900

      Overhead

141,300

   Total costs in beginning work in process

$382,660

Units started into production in January

71,000

Units completed and transferred in January

74,000

Costs added to production:

   Materials

$378,605

   Labor

690,080

   Overhead

1,383,160

Total cots added into production in January

$2,451,845

Work in process ending

   Units in process

21,000

   Stage of completion for materials

75%

   Stage of completion for labor and overhead

20%

Instructions:

Prepare a production cost report for Waterways using the weighted-average method.

Solution

Solution: