WCP16 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 24,000

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 16,892

Total costs in beginning work in process $252,816

Units started into production in January 60,000

Units completed and transferred in January 58,000

Costs added to production:

Materials $265,450

Labor 289,468

Overhead 60,578

Total costs added into production in January $615,496

Work in process ending:

Units in process 26,000

Stage of completion for materials 50%

Stage of completion for labor and overhead 10%


(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.