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: points 79,000 440,000 eBook 39,000 Production data: Pounds in process, May 1; materials 100% complete; conversion 90% complete Pounds started into production during May Pounds completed and transferred out Pounds in process, May 31; materials 75% complete; conversion 25% complete Cost data: Work in process inventory, May 1: Materials cost Conversion cost Cost added during May: Materials cost Conversion cost Print $100,200 $ 12,100 $521,085 $ 66,260 References Required: 1. Compute the equivalent units of production for materials and conversion for May 2. Compute the cost per equivalent unit for materials and conversion for May. 3. Compute the cost of ending work in process inventory for materials, conversion, and in total for May. 4. Compute the cost of units transferred out to the next department for materials, conversion, and in total for May. 5. Prepare a cost reconciliation report for May. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Compute the equivalent units of production for materials and conversion for May. Materials Conversion Equivalent units of production

Answer 1

Solution

	Material	Conversion
Equivalent Units of Production	509,250	489,750

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	Material	Conversion
Cost per equivalent Unit	$                    1.22	$                   0.16

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	Material	Conversion	Total
Ending Inventory	$ 35,685	$ 1,560	$ 37,245

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	Material	Conversion	Total
Units Completed and transferred	$ 585,600	$ 76,800	$ 662,400

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Cost Reconciliation
Costs to be accounted for:
Beginning Wip cost	$ 112,300
Cost incurred during period	$ 587,345
Total cost to be accounted for	$ 699,645
Costs accounted for as follows:
Cost of Units Transferred Out	$ 662,400
Cost of Ending Wip	$ 37,245
Total cost accounted for	$ 699,645

Working

Statement of Equivalent Units(Weighted average)
				Material		Conversion cost
	Units			Complete %	Equivalent units	Complete %	Equivalent units
Transferred out	480,000			100%	480,000	100%	480,000
Ending WIP	39,000			75%	29,250	25%	9,750
Total	519,000			Total	509,250	Total	489,750

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Cost per Equivalent Units (Weighted average)
COST		Material	Conversion cost	TOTAL
Beginning WIP Inventory Cost		$ 100,200	$ 12,100	$ 112,300
Cost incurred during period		$ 521,085	$ 66,260	$ 587,345
Total Cost to be accounted for		$ 621,285	$ 78,360	$ 699,645
Total Equivalent Units		509,250	489,750
Cost per Equivalent Units		$                   1.22	$                     0.16	$                1.38

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Statement of cost (Weighted average)
Cost	Equivalent Cost/unit	Ending WIP		Transferred
		Units	Cost Allocated	Units	Cost Allocated
Material	$ 1.22	29,250	$          35,685.00	480,000	$ 585,600
Conversion cost	$ 0.16	9,750	$             1,560.00	480,000	$ 76,800
TOTAL	$ 699,645	TOTAL	$ 37,245	TOTAL	$ 662,400