Question

Problem 4-16 Comprehensive Problem-Weighted Average Method (LO4-2, LO4-3, LO4-4, LO4-5) 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 90, eee 550, eee 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 50, eee $152,300 $ 63,300 $ 791,45€ $ 348,180 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 1 Required 2 >
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Answer 1

Answers

• [1]

	Material	Conversion
Equivalent units of production	625,000	605,000

EUP - Weighted Average Method	Units	% Material	EUP Materials	% Conversion	EUP - Conversion
Units TRANSFERRED	590,000	100%	590,000	100%	590,000
Units of ENDING WIP	50,000	70%	35,000	30%	15,000
Equivalent Units of Production			625,000		605,000

• [2]

	Material	Conversion
Cost per Equivalent units	$                         1.51	$                              0.68

COST per EUP			Material		Conversion
Cost of Beginning WIP			$        152,300.00		$                                  63,300.00
Cost incurred during the period			$        791,450.00		$                                348,100.00
Total Costs		Costs	$        943,750.00	Costs	$                                411,400.00
Equivalent units of production		EUP	625,000	EUP	605,000
Cost per EUP			$              1.51000		$                                      0.68000

• [3]

	Material	Conversion	Total
Cost of ending WIP Inventory	$               52,850.00	$                    10,200.00	$                       63,050.00

Cost of ending WIP	EUP	Cost per EUP	Total Cost
- Direct Materials	35,000	$                      1.51	$          52,850.00
- Conversion	15,000	$                      0.68	$          10,200.00
Total cost of ending WIP				$              63,050.00

• [4]

	Material	Conversion	Total
Cost of units completed & transferred out	$            890,900.00	$                 401,200.00	$                 1,292,100.00

Cost of Units Transferred Out	EUP	Cost per EUP	Total Cost
- Direct Materials	590,000	$                      1.51	$        890,900.00
- Conversion	590,000	$                      0.68	$        401,200.00
Total Cost transferred Out				$        1,292,100.00

• [5]

Costs to be accounted for:
Cost of Beginning WIP Inventory	$         215,600.00
Cost added to production during the period	$     1,139,550.00
Total Cost to be accounted for	$     1,355,150.00
Costs accounted for as follows:
Cost of units transferred out	$     1,292,100.00
Cost of Ending WIP Inventory	$           63,050.00
Total Cost accounted for	$     1,355,150.00