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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 Packaging 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		20,400
Stage of completion for materials		80%
Stage of completion for labor and overhead		30%
Costs in work in process inventory:
Materials		$ 168,630
Labor		67,880
Overhead		17,340
Total costs in beginning work in process		$ 253,850
Units started into production in January		60,100
Units completed and transferred in January		57,900
Costs added to production:
Materials		$ 271,482
Labor		293,678
Overhead		60,270
Total costs added into production in January		$ 625,430
Work in process ending:
Units in process		22,600
Stage of completion for materials		50%
Stage of completion for labor and overhead		10%

(a)

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Prepare a production cost report for Waterways using the weighted-average method. (Round unit costs to 2 decimal places, e.g. 2.25.)

WATERWAYS CORPORATION Molding Department Production Report For the Quarter Ended January 31January 31For the Month of January
				Equivalent Units
Quantities		Physical Units		Materials		Conversion Costs
Units to be accounted for
Work in process, Jan. 1		20400
Started into production		60100
Total units		80500
Units accounted for
Transferred out		57900		57900		57900
Work in process, Jan. 31		22600		11300		2260
Total units		80500		69200		60160
Costs				Materials		Conversion Costs		Total
Unit costs
Costs in January				$		$		$
Equivalent units
Unit costs				$		$		$
Costs to be accounted for
Work in process, Jan. 1								$ 253850
Started into production								625430
Total costs								$ 879280
Cost Reconciliation Schedule
Costs accounted for
Transferred out								$
Work in process, Jan. 31
Materials
Conversion costs
Total costs								$

b.)

Equivalent units for materials and conversion costs- Using FIFO
	Equivalent Units
	Physical Units	Materials	Conversion
Units accounted for
Completed and transferred out
Work in process, Jan. 1
Started and completed in Jan.
Work in process, Jan. 31
Total units

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