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 .................... 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

(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.