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Waterways Problem 03 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 23,000 Stage of completion for materials 80% Stage of completion for labor and overhead 30% Costs in work in process inventory: Materials $169,100 Labor 67,890 Overhead 17,360 Total costs in beginning work in process $254,350 Units started into production in January 60,000 Units completed and transferred in January 57,500 Costs added to production: Materials $263,640 Labor 292,815 Overhead 60,300 Total costs added into production in January $616,755 Work in process ending: Units in process 25,500 Stage of completion for materials 50% Stage of completion for labor and overhead 10%

Show the equivalent units for materials and conversion costs if Waterways used FIFO instead of weighted-average. 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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