Question

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.

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: 64,000 290,000 24,000 Production data: Pounds in process, May 1: materials 1001 complete conversion 900 complete Pounds started into production during May Pounds completed and transferred out Pounds in process, May 31, materials 608 complete conversion 400 complete Cost data: Work in process inventory, May 1: Materials cost Conversion cost Cost added during May. Materiale cost Conversion cost $ 69,500 $ 23,500 $361,000 $129,320 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 2 Required 1 Required 3 Required 5 Required 4 Compute the equivalent units of production for materials and conversion for May. Materials Conversion Equivalent units of production

Answer 1

1) Equivalent unit

	Material	Conversion
Unit transferred out	64000+290000-24000 = 330000	330000
Ending WIP	24000*60% = 14400	9600
Total	344400	339600

2) Cost per equivalent unit

	Material	Conversion
Beginning WIP	69500	23500
Cost added	361000	129320
Total Cost	430500	152820
Equivalent unit	344400	339600
Cost per equivalent unit	1.25	0.45

3) Cost of ending WIP

	Material	Conversion	Total
Cost of ending WIP	14400*1.25 = 18000	9600*.45 = 4320	22320

4) Cost of Unit transferred out

	Material	Conversion	Total
Cost of Unit transferred out	330000*1.25 = 412500	330000*.45 = 148500	561000

5) Cost reconciliation

Cost to be accounted for
Beginning WIP	93000
Cost added	490320
Total cost to be accounted for	583320
Cost accounted as
Cost of unit transferred out	561000
Ending WIP	22320
Total cost accounted for	583320