Because most of the parts for Waterways' drainage and irrigation systems are standard, the company uses a process cost system for most of its manufacturing. Its recent contract to upgrade the city-owned soccer fields has increased the demand for a specific type of maintenance- free piping and the new joints and coupling units that make the systems so flexible.

The parts go through three separate processes: moulding, cutting, and welding. They are then transferred to Raw Materials Inventory where they are available to the installation units for use in the field.

The following information is available for the processing of the piping in the moulding department for the month of July. One metre of piping is considered to be one unit.

Instructions
(a) Using the weighted-average method, prepare a production cost report for Waterways for the moulding department for the month of July.
(b) Show the equivalent units for materials and conversion costs if Waterways used the FIFO method instead of weighted-average.

Transcribed Image Text:

Beginning work in process: Units in process Stage of completion for materials Stage of completion for labour and overhead 40,000 100% 70% Costs in work in process inventory $138,360 27,564 13,782 Labour Overhead $179,706 Units started into production in July Units completed and transferred out in July 62,000 60,000 Costs added to production during July: Materials Labour Overhead $216,690 48,312 24,156 $289,158 Ending work in process Units in process Stage of completion for materials Stage of completion for labour and overhead 42,000 100% 40%