Question

Problem 5-16 Comprehensive Problem-Weighted-Average Method (L05-2, L05-3, LO5-4, LO5-5) 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 83,000 480,000 Production data: Pounds in process, May 1; materials 100% complete; conversion complete Pounds started into production during May Pounds completed and transferred out Pounds in process, May 31: materials 75% complete; conversion 25% complete Castdata: work in process inventory, May 11 Materials cost Conversion cost cost added during May Materials cost Conversion cost 43. $ 128,300 $ 53,900 $566, 5296,95 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

Answer 1

3 Compute the equivalent Units of Production Unit Information Units to account for; Pounds in beginning work in process inventory Pounds started in during the period Total Units to account for 83000 480000 563000 Units accounted for Pounds Completed & Transferred Out (563000-43000) Pounds in ending work in process Inventory (43000*75%) Total Units accounted for Equivalent units Equivalent Units Materials Conversion 520000 520000 32250 10750 (43000*25%) 520000 43000 563000 552250530750 17 18 Compute the Cost Per equivalent Unit for material and conversion 19 Costs to account for Costs in beginning work in process inventory Costs incurred during the period Total Costs to account for Total 182200 963335 1145535 Materials Conversion 128300 53900 666940 296395 795240 350295 Total Costs to account for Divided by Equivalent Units Cost per Equivalent Unit 795240 350295 552250530750 1.44 0.66 2.10

29 Compute the cost of ending work in process inventory Total Pounds in ending work in Process Inventory (A) Cost per Equivalent Unit (B) Cost of ending work in process (A* B) Materials 32250 1.44 46,440 Conversion 10750 0.66 7,095 53,535 36 Compute the cost of units transferred out Total Pounds Completed & Transferred Out (A) Cost per Equivalent Unit (B) Cost of Units Completed & Transferred out (AB) Materials 520000 1.44 748,800 Conversion 520000 0.66 343,200 1,092,000

44 Prepare a Cost Reconciliation report 45 46 Cooking Department Cost Reconciliation Costs to account for Costs of beginning work in process Costs incurred this period Total costs to be accounted for 182,200 963,335 1,145,535 Costs accounted for as follows; Costs transferred out to finished goods Cost of ending work in process Total Costs accounted for 1,092,000 53,535 1,145,535