Question

Check my work 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 Skipped 90,000 550,000 50,000 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 70% complete; conversion 30% complete Cost data: Work in process inventory, May 1: Materials cost Conversion cost Cost added during May: Materials cost Conversion cost eBook $152,300 $ 63,300 Print $ 791,450 $ 348, 100 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	625,000	605,000

.

	Material	Conversion
Cost per equivalent Unit	$                    1.51	$                   0.68

.

	Material	Conversion	Total
Ending Inventory	$ 52,850	$ 10,200	$ 63,050

.

	Material	Conversion	Total
Units Completed and transferred	$ 890,900	$ 401,200	$ 1,292,100

.

Cost Reconciliation
Costs to be accounted for:
Beginning Wip cost	$ 215,600
Cost incurred during period	$ 1,139,550
Total cost to be accounted for	$ 1,355,150
Costs accounted for as follows:
Cost of Units Transferred Out	$ 1,292,100
Cost of Ending Wip	$ 63,050
Total cost accounted for	$ 1,355,150

Working

Statement of Equivalent Units(Weighted average)
				Material		Conversion cost
	Units			Complete %	Equivalent units	Complete %	Equivalent units
Transferred out	590,000			100%	590,000	100%	590,000
Ending WIP	50,000			70%	35,000	30%	15,000
Total	640,000			Total	625,000	Total	605,000

.

Reconciliation of Units
A	Beginning WIP	90,000
B	Introduced	550,000
C=A+B	TOTAL	640,000
D	Transferred out	590,000
E=C-D	Ending WIP	50,000

.

Cost per Equivalent Units (Weighted average)
COST		Material	Conversion cost	TOTAL
Beginning WIP Inventory Cost		$ 152,300	$ 63,300	$ 215,600
Cost incurred during period		$ 791,450	$ 348,100	$ 1,139,550
Total Cost to be accounted for		$ 943,750	$ 411,400	$ 1,355,150
Total Equivalent Units		625,000	605,000
Cost per Equivalent Units		$                   1.51	$                     0.68	$                2.19

0

Statement of cost (Weighted average)
Cost	Equivalent Cost/unit	Ending WIP		Transferred
		Units	Cost Allocated	Units	Cost Allocated
Material	$ 1.51	35,000	$          52,850.00	590,000	$ 890,900
Conversion cost	$ 0.68	15,000	$          10,200.00	590,000	$ 401,200
TOTAL	$ 1,355,150	TOTAL	$ 63,050	TOTAL	$ 1,292,100