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 60.000 250.000 Production data Founds in process, May 1: materials 1001 complete; conversion 900 complete Pounds started into production during May Pounds completed and transferred out Pounds in process, May 31 materials 601 complete conversion 400 complete Cost data! Work in process inventory, May 11 Materials cast Conversion cost Cost added during May Materials cost Conversion cost 20,000 $ 59,000 $ 23,400 $306,420 $128,580 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.

Answer 1

Solution

	Material	Conversion
Equivalent Units of Production	302,000	298,000

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	Material	Conversion
Cost per equivalent Unit	$                    1.21	$                   0.51

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	Material	Conversion	Total
Ending Inventory	$ 14,520	$ 4,080	$ 18,600

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	Material	Conversion	Total
Units Completed and transferred	$ 350,900	$ 147,900	$ 498,800

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Cost Reconciliation
Costs to be accounted for:
Beginning Wip cost	$ 82,400
Cost incurred during period	$ 435,000
Total cost to be accounted for	$ 517,400
Costs accounted for as follows:
Cost of Units Transferred Out	$ 498,800
Cost of Ending Wip	$ 18,600
Total cost accounted for	$ 517,400

Working

Statement of Equivalent Units(Weighted average)
				Material		Conversion cost
	Units			Complete %	Equivalent units	Complete %	Equivalent units
Transferred out	290,000			100%	290,000	100%	290,000
Ending WIP	20,000			60%	12,000	40%	8,000
Total	310,000			Total	302,000	Total	298,000

.

Cost per Equivalent Units (Weighted average)
COST		Material	Conversion cost	TOTAL
Beginning WIP Inventory Cost		$ 59,000	$ 23,400	$ 82,400
Cost incurred during period		$ 306,420	$ 128,580	$ 435,000
Total Cost to be accounted for		$ 365,420	$ 151,980	$ 517,400
Total Equivalent Units		302,000	298,000
Cost per Equivalent Units		$                   1.21	$                     0.51	$                1.72

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Statement of cost (Weighted average)
Cost	Equivalent Cost/unit	Ending WIP		Transferred
		Units	Cost Allocated	Units	Cost Allocated
Material	$ 1.21	12,000	$          14,520.00	290,000	$        350,900.00
Conversion cost	$ 0.51	8,000	$             4,080.00	290,000	$        147,900.00
TOTAL	$ 517,400	TOTAL	$ 18,600	TOTAL	$ 498,800