Define conversion costs if waterways used fifo

Reference no: EM13215163

WCP3 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
Stage of completion for materials
Stage of completion for labor and overhead
Costs in work in process inventory:
Materials
Labor
Overhead

$168,360
67,564
17,270

Total costs in beginning work in process

$253,194

22,000
80%
30%

Units started into production in January
Units completed and transferred in January
Costs added to production:
Materials
Labor
Overhead

$264,940
289,468
60,578

Total costs added into production in January

$614,986

Work in process ending:
Units in process
Stage of completion for materials
Stage of completion for labor and overhead

60,000
58,000

24,000
50%
10%

Instructions
(a) Prepare a production cost report for Waterways using the weighted-average method.
(b) Show the equivalent units for materials and conversion costs if Waterways used FIFO instead of weighted-average.

Reference no: EM13215163

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