Answer:
<u>Equivalent units of materials, labor, and overhead</u>
Materials
Units in Ending Work in Progress (2,600 × 80%) = 2,080
Labor
Units in Ending Work in Progress (2,600 × 60%) = 1,560
Overhead
Units in Ending Work in Progress (2,600 × 60%) = 1,560
<u>Cost of ending work in process inventory for materials, labor, overhead</u>
Materials
Cost = Equivalent units × unit cost
= 2,080 × $ 13.70
= $28,496
Labor
Cost = Equivalent units × unit cost
= 1,560 × $4.70
= $7,332
Overheads
Cost = Equivalent units × unit cost
= 1,560 × $ 7.40
= $11,544
<u>Cost of the units transferred to the next department</u>
Materials = $28,496
Labour = $7,332
Overheads = $11,544
Total = $47,372
<u>Cost reconciliation for January</u>
<u>INPUTS</u>
Beginning Cost + Cost Added $720,752
Total $720,752
<u>OUTPUT</u>
Ending Work in Process $47,372
Completed and Transferred ( 26,100 × 25.80) $673,380
Total $720,752
