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: 80,000 450,000 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 60% complete; conversion 48% complete Cost data: Work in process inventory, May 1: Materials cost Conversion cost Cost added during May: Materials cost Conversion cost 40,000 $116,900 $ 35,800 $607,840 $196,960 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 Required 2 >

Answer 1

Work in Process, Beginning	80000
Add: Pounds started during May	450000
Less: Ending inventory	-40000
Units completed and transferred out	490000
1
	Materials	Conversion
Units completed and transferred out	490000	490000
Work in process, ending:
40000 X 60%	24000
40000 X 40%		16000
Equivalent units of production	514000	506000
2
	Materials	Conversion
Work in process, May 1	116900	35800
Cost added during May	607840	196960
Total costs	724740	232760
Divide by Equivalent units of production	514000	506000
Cost per Equivalent unit	1.41	0.46
3
	Materials	Conversion	Total
Work in process, ending units	24000	16000
X Cost per Equivalent unit	1.41	0.46
Cost of ending work in process inventory	33840	7360	41200
4
	Materials	Conversion	Total
Units completed and transferred out	490000	490000
X Cost per Equivalent unit	1.41	0.46
Cost of Units completed and transferred out	690900	225400	916300
5
Cost Reconciliation:
Cost to be accounted for:
Cost of Beginning work in Process inventory	152700
Cost added during May	804800
Total Cost to be accounted for	957500
Cost accounted for as follows:
Cost of Units completed and transferred out	916300
Cost of ending work in process inventory	41200
Total Cost accounted for	957500