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 10e% complete; conversion 90% complete Pounds started into production during May Pounds completed and transferred out Pounds in process, May 31; materials 80% complete; conversion 20% complete 73,000 380,000 33,000 Cost data: Work in process inventory, May 1: Materials cost Conversion cost Cost added during May: Materials cost Conversion cost $111,600 $ 55,800 $580,320 $306,810 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 Prepare a cost reconciliation report for May. (Round your intermediate calculations to 2 decimal places.) Cost Reconciliation Costs to be acounted for Total cost to be accounted for Costs accounted for as followws Total oost ac0ounded for Required 4 Re < Prev

Answer 1

Requirement 1

	Material	Conversion
Equivalent Units of Production	446,400	426,600

Requirement 2

	Material	Conversion
Cost per equivalent Unit	$                    1.55	$                   0.85

Requirement 3 and 4

	Material	Conversion	Total
Ending Inventory	$ 40,920	$ 5,610	$ 46,530
Units Completed and transferred	$ 651,000	$ 357,000	$ 1,008,000

Requirement 5

Cost Reconciliation
Costs to be accounted for:
Beginning Wip cost	$ 167,400
Cost incurred during period	$ 887,130
Total cost to be accounted for	$ 1,054,530
Costs accounted for as follows:
Cost of Units Transferred Out	$ 1,008,000
Cost of Ending Wip	$ 46,530
Total cost accounted for	$ 1,054,530

Working

Reconciliation of Units
A	Opening WIP	73,000
B	Introduced	380,000
C=A+B	TOTAL	453,000
D	Transferred	420,000
E=C-D	Closing WIP	33,000

.

Statement of Equivalent Units(Weighted average)
				Material		Conversion cost
	Units			Complete %	Equivalent units	Complete %	Equivalent units
Transferred	420,000			100%	420,000.0	100%	420,000
Closing WIP	33,000			80%	26,400.0	20%	6,600
Total	453,000			Total	446,400.0	Total	426,600

.

Cost per Equivalent Units (Weighted average)
COST		Material	Conversion cost	TOTAL
Beginning WIP Inventory Cost		$ 111,600	$ 55,800	$ 167,400
Cost incurred during period		$ 580,320	$ 306,810	$ 887,130
Total Cost to be accounted for		$ 691,920	$ 362,610	$ 1,054,530
Total Equivalent Units		446,400	426,600
Cost per Equivalent Units		$                   1.55	$                     0.85

.

Statement of cost (Weighted average)
Cost	Equivalent Cost/unit	Ending WIP		Transferred
		Units	Cost Allocated	Units	Cost Allocated
Material	$ 1.55	26,400	$          40,920.00	420,000	$ 651,000
Conversion cost	$ 0.85	6,600	$             5,610.00	420,000	$        357,000.00
TOTAL	$ 1,054,530	TOTAL	$ 46,530	TOTAL	$ 1,008,000