Question

Builder Products, Inc., uses the weighted-average method in its process costing system. It manufactures a caulking compound that goes through three processing stages prior to completion. Information on work in the first department, Cooking, is given below for May:

Production data:
Pounds in process, May 1; materials 100% complete; conversion 90% complete		88,000
Pounds started into production during May		530,000
Pounds completed and transferred out		?
Pounds in process, May 31; materials 60% complete; conversion 40% complete		65,000
Cost data:
Work in process inventory, May 1:
Materials cost	$	106,000
Conversion cost	$	59,700
Cost added during May:
Materials cost	$	551,120
Conversion cost	$	328,230

Required:

1. Compute the equivalent units of production for materials and conversion for May.

	Materials Conversion Equivalent units of production

2. Compute the cost per equivalent unit for materials and conversion for May.

	Materials Conversion Cost per equivalent unit

3. Compute the cost of ending work in process inventory for materials, conversion, and in total for May.

	Materials Conversion Total Cost of ending work in process inventory

4. Compute the cost of units transferred out to the next department for materials, conversion, and in total for May.

	Materials Conversion Total Cost of units completed and transferred out

5. Prepare a cost reconciliation report for May.

	Blending Department Cost Reconciliation Costs to be accounted for: Total cost to be accounted for Costs accounted for as follows: Total cost accounted for

Answer 1

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Please see below answer based on Number of Unit Production, determined cost, cost per unit . Please check line by line . Any doubt , please drop me message . I will support you accordingly

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	Builder Products, Inc., uses the weighted-average method in its process costing system
	It manufactures a caulking compound that goes through process stage prior to completion
	Details
	Pounds in process- May 1	88,000
	material 100% complete
	Conversion 90% complete
	Pounds started in to Production	5,30,000
	Pounds in process- May 31
	material 60% complete
	Coversion 40% complete	65,000
	Pounds completed & transfer out	???
	Pounds in process- May 1	88,000
	material 100% complete
	Coversion 90% complete
	Pounds started in to Production	5,30,000
	Total production Unit	6,18,000	a
	Closing Pound Process - 31st May
	material 60% complete	65,000	b
	Coversion 40% complete
	Pounds completed & transfer out	5,53,000	(a-b)
Answer 1	Determined Equivalent unit	Material Cost		Conversion
		% completed	Units	% completed	Units
	Pounds completed & transfer out	100%	5,53,000	100%	5,53,000
	Closing Pound Process - 31st May	60%	39,000	40%	26,000
	material 60% complete
	Coversion 40% complete
	(60% *65000-- Material cost
	(40% *65000-- Conversion cost
	Total Equivalent unit		5,92,000		5,79,000
Answer 2	Determined Cost Factor
	Workin in Process -1st May	Material Cost$		Conversion Cost$
	Material cost	1,06,000		59,700
	Add - cost added during period	5,51,120		3,28,230
	Total cost incurred	6,57,120		3,87,930
	Calculated cost Per unit
	Total cost incurred-a $	6,57,120		3,87,930
	Total Equivalent unit -b	5,92,000		5,79,000
	Rate per unit(a/b)$/ Unit	1.11		0.67
	As per above calculation
	Pounds completed & transfer out	Unit (m)	Rate ($/Unit)(n)	Total Cost$(m*n)
	material( as above)	5,53,000	1.11	6,13,830
	Conversion( as above)	5,53,000	0.67	3,70,510
	Total Cost Pounds completed & transfer out			9,84,340
	Closing Work in process	Unit (m)	Rate ($/Unit)(n)	Total Cost$(m*n)
	material( as above )	39,000	1.11	43,290
	Conversion( as above)	26,000	0.67	17,420
	Total Cost of closing Work In Progress			60,710
	Total Cost as calculated above			Amnt($)
Answer 5	Cost reconciliation
	Total Cost Pounds completed & transfer out- as above			9,84,340
	Total Cost of closing Work In Progress- as above			60,710
	Total Cost			10,45,050
	Initial Cost as per Question
	Work in Process - 1st May	Amnt($)
	Material cost	1,06,000
	Conversion cost	59,700
	Total Work in process - 1st May	1,65,700	a
	Cost Added during year
	Material cost	5,51,120
	Conversion cost	3,28,230
	Total Cost incurred during period	8,79,350	b
	Total Cost initial stage	10,45,050	(a+b)