Question

18 Builder Products, Inc., 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 Skipped 79,000 440,000 eBook 39,000 Print 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 References $ 100,200 $ 12,100 $ 521,085 Conversion cost $ 66,260

Answer 1

456

Weighted average method :
Beginning work in process units	79000
(+) Units started during May	440000
(-) Ending work in process units	39000
Units completed and transferred out	480000

Required 1 :
	Materials	Conversion
Units completed and transferred out	480000	480000
(+) Equivalent ending work in process [ Ending work in process units * % Completion ]	29250	9750
Equivalent units of production	509250	489750

Required 2 :
	Materials	Conversion
Beginning work in process cost	100200	12100
(+) Cost added during May	521085	66260
Total cost	621285	78360
(/) Equivalent units of production	509250	489750
Cost per equivalent unit	1.22	0.16