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: 40 points 76,000 410,000 eBook 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 60% complete; conversion 40% complete Cost data: Work in process inventory, May 1: Materials cost Conversion cost Cost added during May: Materials cost Conversion cost 36,000 References $117,900 $ 53,600 $613,080 $294,700 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

Answer 1

1) Equivalent units Pounds in process, May 1 Add: Pounds started into the production Total Pounds available for production Pounds in process, May 31 Pounds completed and transferred out 76,000 410,000 486,000 (36,000) 450,000 Whole units Equilvalent Units Materials Conversion % Completed Equivalent Unit % Completed Equivalent Unit Units accounted for: Units completed and transferred out Units, ending work in process Equivalent Units 450,000 36,000 486,000 100% 60% 450,000 21,600 100% 40% 450,000 14,400 464,400 471,600 Materials Conversion 464,400 Equivalent Units of production 471,600 2) Cost per Equivalent unit of production Materials Beginning Work in Process Cost added during the month Total Cost Equivalent unit of production Unit cost 117,900 613,080 730,980 471,600 1.55 Conversion $ 53,600 294,700 $ 348,300 464,400 $ 0.75 $ Materials $ Conversion $ Cost per equivalent unit 1.55 0.75

3) Ending Work in Process Inventory Materials $ Conversion $ 10,800 Total $ Cost of ending work in process inventory 33,480 44,280 Notes: Materials Conversion Cost of Ending Work in Process Inventory Equivalent Unit [A] 21,600 14,400 Unit Cost [B] $ $ Total Cost [ A B ] 1.55 $ 33,480 0.75 10,800 $ 44,280 4) Cost of units completed and transferred out Materials $ Conversion $ 337,500 Total $ Cost of units completed and transferred out 697,500 1,035,000 Notes: B] Equivalent Unit Unit Cost [A] 450,000 $ 450,000 $ Materials Conversion Cost of units completed and transferred out Total Cost [ AB] 697,500 337,500 $ 1,035,000 0.75

Cost Reconciliation Costs to be accounted for: Work in Process, Beginning (117,900 + 53,600) Cost added during June (613,080 + 294,700) Total cost to be accounted for Costs accounted for as follows: Cost of units completed and transferred out Cost of ending work in process inventory Total cost accounted for 171,500 907,780 1,079,280 1,035,000 44,280 1,079,280