The inspection department at Waterway Industries receives manufactured parts from its own production department and then...

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The inspection department at Waterway Industries receives manufactured parts from its own production department and then meticulously checks every part before packaging it for sale. This month, the production department focused on automobile side mirrors. The inspection department began April with just 180 side mirrors in process. These beginning units were 70% of the way through the inspection process. During April, 3,080 more side mirrors were transferred-in from the production department. By month's end, 2,680 units had been fully inspected and packaged (packaging occurs when the units reach the 95% completion point in the inspection department). April's ending WIP Inventory units in the inspection department were 40% of the way through the inspection process. (a) Determine Waterway's equivalent units for transferred-in costs, DM, and conversion costs in April, assuming the company uses the FIFO method of process costing. Total equivalent units of work done Transferred-in DM Conversion Cost (b) Determine equivalent units for all three cost categories in part (a), assuming Waterway instead uses the weighted-average method of process costing. Total equivalent units of work done Transferred-in DM Conversion Cost (b) Determine equivalent units for all three cost categories in part (a), assuming Waterway instead uses the weighted-average method of process costing. Total equivalent units of work done Transferred-in DM Conversion Cost (d) Which of the two methods more accurately reflects how the work in the inspection department is done? The inspection department at Waterway Industries receives manufactured parts from its own production department and then meticulously checks every part before packaging it for sale. This month, the production department focused on automobile side mirrors. The inspection department began April with just 180 side mirrors in process. These beginning units were 70% of the way through the inspection process. During April, 3,080 more side mirrors were transferred-in from the production department. By month's end, 2,680 units had been fully inspected and packaged (packaging occurs when the units reach the 95% completion point in the inspection department). April's ending WIP Inventory units in the inspection department were 40% of the way through the inspection process. (a) Determine Waterway's equivalent units for transferred-in costs, DM, and conversion costs in April, assuming the company uses the FIFO method of process costing. Total equivalent units of work done Transferred-in DM Conversion Cost (b) Determine equivalent units for all three cost categories in part (a), assuming Waterway instead uses the weighted-average method of process costing. Total equivalent units of work done Transferred-in DM Conversion Cost (b) Determine equivalent units for all three cost categories in part (a), assuming Waterway instead uses the weighted-average method of process costing. Total equivalent units of work done Transferred-in DM Conversion Cost (d) Which of the two methods more accurately reflects how the work in the inspection department is done?

Answer rating: 100% (QA)

solution aTransferredin Costs 3080 no calculation necessary as 3080 units were transferredin DM 3080 ... View the full answer